NEW YORK (HedgeWorld.com)–A new long/short U.S. equity fund is investigating some of the more overlooked indicators and sectors for use in its investment strategy.
Riverside Capital Partners LLC on Oct. 1 launched Riverside Capital Partners LP, an onshore long/short equity fund investing in media and communications, consumer retail and industrial company sectors. In an unusual approach to long/short investing, Riverside is investing in small-cap and midcap companies on the long side and large-cap stocks on the short side of the portfolio.
In a value-oriented approach the fundamental focus is on cash flow. Companies that are generating a lot of cash and are undervalued will be held as longs, while companies without free cash flow and a specific catalyst will be shorted.