Credit Opportunities Strategy

Credit Opportunities Strategy

LIM’s Credit Opportunities strategy concentrates on event-driven corporate credit and special situations. We seek stable, positive, risk-adjusted returns with limited correlation to equity or credit markets. The opportunity set includes underfollowed credits, stressed and distressed debt, levered and post reorganization equities, intra-capital arbitrage and opportunistic positions. Our focus is on short duration opportunities with an emphasis on small- to medium-sized capital structures. We spend substantial time identifying catalysts and analyzing the underlying credit.

Strategy Advantages

  • Low correlation to stocks and bonds
  • Performance is not sensitive to general credit or equity trends
  • Opportunity to extract value from underfollowed credits
  • Historically has experienced significantly less volatility than the overall stock market
  • Average duration is typically 2-3 years - natural turnover allows for the opportunity to capture upward movements in short-term rates
  • Flexibility to supplement holdings by investing in credit and equity shorts with near-term catalysts