Published on 13 Jul 2022 on Insider Monkey via Yahoo Finance

10 Stocks to Buy According to Carlson Capital

In this article, we discuss 10 stocks to buy according to Carlson Capital. If you want to skip our detailed analysis of the fund’s investment philosophy and performance, go directly to 5 Stocks to Buy According to Carlson Capital.

Clint Carlson established Carlson Capital, an alternative asset management hedge fund, in 1993. The fund, whose main office is in Dallas, Texas, offers its services to enterprises and pooled investment vehicles and manages close to $5.3 billion. Carlson Capital's multi-strategy approach to investing employs: risk arbitrage, convertible arbitrage, relative value arbitrage (mainly pairs trading), event-driven arbitrage, distressed/credit arbitrage, and traditional long/short strategies. Three pillars—ideology, people, and process—direct the fund's investment decisions. Mr. Carlson is currently Carlson Capital's president and chief investment officer.

According to the Wall Street Journal, the fund has maintained its success since inception, including 39% returns in 2010 on a $1 billion investment in distressed home bonds. Currently, the Black Diamond and Double Black Diamond funds handle most of Clint Carlson's assets, which total more than $6 billion. In addition, the hedge fund’s Black Diamond Arbitrage Fund invests in merger possibilities, one of its multifaceted strategies. It had over $666 million in assets in 2021 and returned 8.4% to investors. Despite its challenges, the hedge fund had a solid start to 2022, with its flagship fund, Double Black Diamond, returning 3.94% in April. In 2021, Clint Carlson's Carlson Capital recorded above-average results, gaining 13.3% compared to the 10% average return for hedge funds.