Throughout our history, we have based our investment philosophy around a single belief— that the key to consistent, long-term success is achieving an optimal balance between enhancing return and managing risk.
We believe that attaining this balance requires comprehensive knowledge of underlying companies and their capital structure. We therefore analyze a business as would a private buyer. By defining economic enterprise value, we are better positioned to assess the true risks and return potential of a company.
Once we define the value of a business, our investment team assesses the individual securities within its capital structure. We unite historical data and future projections with fundamental analysis, considering possible catalysts for price movement. Based on our capital structure evaluation, we seek to identify the best opportunities across specific security types (for example, determining the relative attractiveness of a company's corporate debt, convertible debt and common equity). We conduct this analysis within the parameters of multiple risk-reward scenarios.
We believe the rapidly evolving global markets call for an opportunistic approach. Accordingly, we are benchmark aware but not benchmark constrained. Many of our strategies blend security types, and benefit from a high degree of market-capitalization and geographic flexibility, where applicable.