The following is an excerpt from MarketFolly.com's quarterly newsletter, Hedge Fund Wisdom (click here for a free sample). It provides updates on what top hedge funds are buying and selling and the investment theses behind their picks.

Craig Nerenberg from Brenner West Capital pitched Tetragon Financial Group (TFG) at the Harbor Investment Conference on February 3rd as a top idea for 2011. TFG is a classic discount to net asset value (NAV) idea coupled with tailwinds that will continue to grow NAV, at least in the near term.