Rocky Rococo

Arbitrage Opportunity: Western Sizzlin/Steak 'n Shake Pair Trade

Ethan,
Here is some performance data for the Lion Fund (in % gain):
2000: 50.8
2001: 30.4
2002: (10.1)
2003: 28.0
2004: 8.4
2005: 21.3

2000 through 2002 were fairly impressive, while 2003 through 2005 were somewhat disappointing (relative to the market). I don't have data for 2006 or 2007, but imagine it would be heavily weighted by FRN and SNS results.

Disclosures: I have been long WEST the last few years and have been long SNS for nearly a year having recently doubled my position for ~$7.50 a share.