Investment Approach

We seek to capitalize on dislocations among different instruments of the corporate capital structure and related derivative securities and receive income from credit instruments.

Our method utilizes a broad range of the capital structure and related derivative securities, either long or short, to construct trades that most efficiently express our underlying investment thesis. Securities include corporate debt, high-yield debt, convertible debt and convertible preferred stock, credit derivatives, preferred stock, equity and equity derivatives.

We seek to generate returns primarily by monetizing movement between the different securities classes and collecting income from interest bearing securities.

Decisions are based on fundamental research with a quantitative overlay. This includes internally generated, bottoms-up credit and equity analysis and top-down portfolio management of aggregate exposures. In addition, we conduct intensive documentation analysis to determine a security’s value.

We seek to maintain a market-neutral portfolio. We do not speculate in commodities but may use instruments such as, but not limited to, futures, swaps, equity and credit indexes, and other over-the-counter products to hedge unwanted risk.