This Long/ Short Equity Fund Returned 30.5 Percent in 2023, Shares Interesting Ideas [Exclusive]

Blue Grotto Capital gained 8% net for the fourth quarter, bringing its full-year return to 15.2% net for 2023. The fund’s long performance for the year was 30.5% net after its short positions detracted 16.5% net from the full-year return. In his fourth-quarter letter to investors, which was obtained by Hedge Fund Alpha, founder and Portfolio Manager Ben Gordon said the short side of their portfolio had a particularly challenging year in 2023 except for the third quarter. He explained that most of their shorts were correlated, especially those with high short interest. General market commentary The fourth quarter was…