Red Oak Partners’ Funds


Red Oak Partners  pic

Red Oak Partners

A business executive, J. Randall (Randy) Waterfield serves as Chairman of the Waterfield Group. J. Randall Waterfield also commits time to Red Oak Partners, LLC, where he sits on the board of directors.

A hedge fund manager, Red Oak Partners was launched in 2003 under the leadership of David Sandberg. The company and its team research and invest in small-cap companies under $500mm in market capitalization. Currently, it oversees two funds, both of which have annualized net returns far in excess of their benchmarks.

Red Oak’s long fund focuses on micro and small-cap North American public companies that are mispriced and have a less-than-optimal following, based on their performance. The Red Oak team does not have short exposure in this particular fund and, instead, looks to achieve long exposure in the 80 to 100 percent range. As of August 2015, the compound annual return reached 21.86 percent (please see Red Oak’s performance disclosures).

The firm’s long/short equity fund invests in micro and small-cap stocks. Like the long fund, investments that appear in the portfolio are those that are underfollowed and mispriced. The fund has performed well since its creation more than 14 years ago, and seeks to optimize after tax returns.


Red Oak Partners’ Investor Activism

When J. Randall Waterfield accepted a position on Red Oak Partners’ board of directors, he joined a firm known for its investor activism. The company has been recognized by the Activist Investor Project as one of the Top 200 Activist Hedge Funds, and over the last decade it has made news several times for challenging the companies in which it holds stakes.

In 2008, Red Oak was a shareholder in when offered to buy the company for $11.50 per share. While’s board recommended shareholders approve the deal, Red Oak criticized it and came out publicly in opposition. The next year, the company engaged in and won a proxy contest when Asure Software proposed to go private. Red Oak has since pushed several other companies to adopt policies more friendly to their shareholders.

J. Randall Waterfield joined Red Oak’s board in October 2014. He also serves on the boards of several companies with which Red Oak has long been involved. Since taking his position on the board, Randy Waterfield has provided Red Oak with capital as well as access to the research and due-diligence resources of Waterfield Group, which he serves as CEO.