Our CLO strategy is led by market veterans with more than 20 years of experience. Our CLO specialists have witnessed all cycles and developments of CLOs since the late 1990s. Since we seeded the fund with our own private capital, we focus on capital preservation analysis on each one of our investments. Every day, we assess whether we should take more or less risk and reassess exit points, realising profits and rolling to new opportunistic trades. Thus, during volatile markets, we can turn around the portfolio quickly and take more risk when the market is oversold.
We invest in all risk levels of CLOs – from AAA to equity tranches, opportunistically. This diversification gives us security on the one hand and the upside potential we are looking for on the other. Our strategy reduces the downside-gap risk in volatile markets.
We analyse every potential investment with state-of-the-art calculation tools that stress test their behaviour until maturity. This enables us to achieve above-average returns in the CLO market.
Although we underwrite risk on a “hold-to-maturity” basis, we manage the portfolio very actively. We did not hesitate to turn over the portfolio 150% in 2020 as the market changed.
All prospective investments need to pass all criteria and all stress tests
Mixed US-EUR Debt / Equity portfolio that benefits from market distortions caused by increased volatility and lack of liquidity
Rapid shift of allocation when the market shifts
Experienced in trading, as a small and agile niche player we can quickly cut losses on the high quality assets and focus on opportunistic bidding in fire sales of distressed/forced sellers when the market turns south
This strategy is currently underutilised in the European CLO market and gives us a competitive advantage as a niche player
All prospective investments need to pass all criteria and all stress tests
Mixed US-EUR Debt / Equity portfolio that benefits from market distortions caused by increased volatility and lack of liquidity
Rapid shift of allocation when the market shifts
Experienced in trading, as a small and agile niche player we can quickly cut losses on the high quality assets and focus on opportunistic bidding in fire sales of distressed/forced sellers when the market turns south
This strategy is currently underutilised in the European CLO market and gives us a competitive advantage as a niche player
The investment process includes:
01. Asset Identification
02. Key Risk Identification
03. Comittee Discussion and Execution
The investment process includes:
01. Asset Identification
02. Key Risk Identification
03. Comittee Discussion and Execution
Our team combines several decades and investment cycles of experience in trading CLOs across the capital structure. We are specialists in both debt and equity, with a successful history of ramping up buy-and-hold strategies. We have exposure to high trading volumes and access to opportunities limited to a few market participants.
As part of a wide network, we are able to source opportunities across both sides of the Atlantic.
We are proud of our track record of delivering high returns by minimising risks through active management style and trading, but mostly, we are proud of always remaining aligned with investors.
Trading financial products carries significant risks, including the risk of a complete loss of investment, and may not be suitable for every investor. Therefore, please consider our risk warnings carefully, ensure that you have clearly understood all associated risks and that your legal place of your residence or registered office allows you to access this information.
