Identifying the Correct Relative Value Strategy Implementation

Hedge funds employ various strategies to achieve high returns and manage risk. One such strategy is known as 'Relative Value,' which seeks to exploit pricing inefficiencies between related securities. This approach often involves taking a long position in an undervalued security while simultaneously taking a short position in an overvalued security.

Consider the following scenarios involving three different Hedge Fund managers applying relative value strategies. Based on your understanding of these strategies, determine which manager's approach is correctly aligned with the principles of relative value investing.