CREDIT EVENTS
How it works
We focus on issuers that have experienced financial stress but retain sound underlying fundamentals. Rather than speculating on recovery, we wait for a concrete catalyst: an asset sale, a capital increase, a debt restructuring, or a comparable event that materially improves the issuer's credit profile.
Positions are taken only after the event has occurred. This means entering the recovery at a later, more certain stage, deliberately forgoing the earliest (and riskiest) portion of the move in exchange for a higher probability outcome with measurable upside.
Why it matters in a portfolio
The strategy generates returns that are largely independent of broader market direction. Because the driver is issuer-specific and event-driven, correlation with other asset classes is low by definition.
This makes it effective both as a source of alpha and as a diversification tool within a multi-strategy portfolio.
How we select
The investment process screens a wide universe of potential targets through fundamental and capital structure analysis. From a pool of several hundred candidates, only a very small number meet the criteria for entry: a clear event, a credible path to credit improvement, and a bond price that has not yet fully reflected the change.
The approach has been applied consistently since 2008, refined through multiple credit cycles.
For more information, contact us.