Flagship ISP CLO Opportunity Fund

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.

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Our CLO Strategy

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. 

Fundamental analysis

All prospective investments need to pass all criteria and all stress tests

Relative Value

Mixed US-EUR Debt / Equity portfolio that benefits from market distortions caused by increased volatility and lack of liquidity

Flexibility

Rapid shift of allocation when the market shifts

Active Trading Style

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

”US-style” Hedge Fund

This strategy is currently underutilised in the European CLO market and gives us a competitive advantage as a niche player

Fundamental analysis

All prospective investments need to pass all criteria and all stress tests

Relative Value

Mixed US-EUR Debt / Equity portfolio that benefits from market distortions caused by increased volatility and lack of liquidity

Flexibility

Rapid shift of allocation when the market shifts

Active Trading Style

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

”US-style” Hedge Fund

This strategy is currently underutilised in the European CLO market and gives us a competitive advantage as a niche player

Investment Process

The investment process includes:

01. Asset Identification

02. Key Risk  Identification

03. Comittee Discussion and Execution

Investment Process

The investment process includes:

01. Asset Identification

02. Key Risk  Identification

03. Comittee Discussion and Execution

01
02
03
Risk Management Approach
IG tranches to BB
Risky BB to equity
Weak Mezz to equity
Our Awards and Achievements

Our strength. Our people.

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.