PHILOSOPHY AND PROCESS:
We invest in fundamental opportunities with a thematic emphasis based on identifying powerful structural shifts and the dynamic economic relationships of a global market. Corporates respond to volatile supply and demand imbalances by becoming price makers or price takers. The former thrive, while the latter change or die. Investors with a grounded view on global trade dynamics can find lucrative investment opportunities in companies undergoing such life and death experiences.
We are drawn towards these unusual investment opportunities for two advantages. They provide well defined parameters allowing us to accurately characterize risk and reward via in-depth analysis. Meanwhile they fall out of the purview of many investors providing us chances for out-sized returns as the thesis becomes more widely appreciated.
We rely on buy- and sell-side networks, as well as independent sources, to generate a universe of a couple hundred companies of all capitalization sizes undergoing five types of corporate events: turnarounds, bankruptcies, spin-offs, mergers and IPOs.
Via intensive diligence and rigorous analysis, we invest in our best ideas. We sell either when our thesis proves wrong, or when our position attains fair value. During the lifecycle of an investment, we will seek to minimize risk by trading and using selective equity derivatives if it is appropriate.