Prosser Creek Asset Management LLC

Prosser Creek Asset Management provides discretionary investment management to a private investment fund (for which it serves as the general partner) and to separately managed accounts, including an endowment and an ERISA plan sponsor for which it acts as a Section 3(38) investment manager. The firm manages assets exclusively on a discretionary basis and serves only qualified purchasers for its pooled vehicles.

The firm pursues a long/short equity strategy built from bottoms-up fundamental research, focusing primarily on unprofitable companies across technology, industrials, financials and consumer sectors and constructing longs where fundamentals are improving and shorts where prospects are deteriorating. While it invests principally in publicly traded U.S. and Canadian equities, the firm also uses options, swaps, futures, other derivatives, margin trading and securities lending as part of its portfolio management and hedging activities.

Compared with many peer investment managers, Prosser Creek concentrates on pooled vehicle management with performance-based compensation exclusively and limited investor control over portfolio decisions, and it discloses extensive use of derivatives and leverage and relationships with prime brokers that provide soft-dollar benefits and capital introduction services. The fund structure, limited liquidity for investors, and the firm’s trading in futures and other derivatives reflect trading-advisor–style activities that are less common among managers in this category.