And Now, a Word From the Hottest Fund This Quarter...

"To be sure, we have had the wind at our back in recent months," says Smith.

Translation: And the sun will come out tomorrow.

How does he find these spectacular opportunities? Smith and his team identify secular trends that will drive growth.

Translation: "We blew through a lot of money on those online grocers. Hopefully no one remembers."

"We also invest in strong management teams. Take Engorge Technologies, for example," Smith adds.

Translation: "We did meet Engorge's management team during the IPO road shows back in the day. I vaguely remember most of the executives having strong handshakes. Except the CFO. But he's in jail, so that's not a problem."

"We're also finding new opportunities."

Translation: If it's going up, we're buying.

"But have also recently eliminated some positions from the fund."

Translation: And if it's falling, we're selling.

"It's been a difficult three years. But we're pleased with the recent performance and we're confident about the fund's prospects going forward."

Translation: "Please, oh, please won't someone buy this fund? I've got mortgage payments to make on that third house I just bought."

Smith does have a word of caution to investors who think they can replicate the fund's performance. "You cannot just invest in any company in this sector of the market. Here at Bailing Water Capital, we know how to separate the wheat from the chaff," Smith says.

Translation: "Of course, we've spent the last three years separating our investors from their money."