Investment Process

Our investment process is largely bottom-up, single credit focused with an overlay of the top-down strategic view developed by our CIO.

Having been active in the market since the beginning of the growth of leveraged finance markets in Europe in the mid 1990's, our investment specialists are familiar with the majority of the credits currently trading. With this experience as well as proprietary modelling and valuation tools, our investment specialists focus on a predetermined list of familiar credits and look for trade ideas which can be either outright directional positions (long or short) or differential positions between different assets in the same credit story, between CDS and cash bonds or between assets of different issuers in the same industry.

Once an investment idea has been approved by the CIO, an investment specialist is responsible for the execution of the trade, using our extensive network of market counterparties. For each investment, another investment specialist is the backup in case the primary investor is unavailable.

After a trade, the investment specialist is responsible for the continued monitoring of his positions. This includes meetings with management, site visits and ongoing analysis of a company's financials and sector. Where the trade has not worked as expected, the investment specialist follows a risk-control discipline to reduce or cut altogether unfavourable positions. For positions which are near to or have achieved their expected return profile, the investment specialist implements an exit strategy to crystallize gains and to reduce or close out those positions altogether.