Performance profile: Waterstone profits


Shawn Bergerson's Waterstone Capital Management is off to a running start this year, with its flagship Waterstone Market Neutral Master Fund, a convertible and equity arbitrage portfolio, up 2% in February to total 6.13% for the year. Those numbers far outpace the Absolute Return Convertible & Equity Arbitrage Index, which rose 1.10% in February and is now up 2.08%.

Waterstone, which manages $488 million in assets, profited handsomely in February when bets on the spreads between convertible and equity securities of Mills Corp., Boston Properties and EMC Corp. worked out in the fund's favor. But concentrated trades aren't