Q1’s Uncertainty Helped Drive This Event-Driven Fund’s Return Past 12 Percent

DG Capital's Concentrated Strategy returned an impressive 12.2% for the first quarter, with 85% of that return resulting from its equity positions and 15% coming from its credit holdings. DG Value Partners II Class C generated a return of 12.26% for the first quarter, while DG Value Partners II Offshore Fund Class C gained 12.14%.

The HFRI Distressed/ Restructuring Index gained 1.21% for the first quarter, while the Event-Driven Total Index was up 1.4%. The Credit Suisse High Yield Index rose 3.9%, and the Russell 2000 returned 2.74% for the quarter.

In his first-quarter letter to investors, which was obtained by Hedge Fund Alpha, Dov Gertzulin said their first-quarter gains were driven by their distressed and special situations positions in both equity...