Waterstone's AUM Down 70% As HLF, FNMA, FMCC Calls Misfire

Waterstone Market Neutral Fund scored some profits in its longtime bearish bet on Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) in last month. The fund rose 2.6% in March, after it had flattened its gains of January with colossal losses in February . Waterstone managed to end the first quarter with a positive return of 2.46%, according to a March investor letter reviewed by ValueWalk.

Waterstone’s assets plunge

Waterstone had a particularly rough time over the last twelve months, the fund lost nearly 20% in 2013. Assets of the fund have stripped down to $478 million from $1.5...