Stillwater Capital Partners manages three hedge funds that posted double-digit returns in 2006 through diversified strategies including asset-backed lending, fund of funds, and multi-strategy funds. The asset-backed lending fund makes short-term bridge loans to real estate developers, law firms, and individuals for insurance premiums, earning steady returns through low volatility and correlation to equity and bond markets. Stillwater also manages a fund of funds that seeks out niche and creative asset-backed managers around the world. While conducting extensive due diligence, they avoid managers that demonstrate greed through opaque fee structures or misrepresenting fund capacity.