Absolute Return Capabilities
LIM’s investment philosophy is to build portfolios that seek to deliver absolute returns and low realized volatility, using top-down risk management coupled with bottom-up security selection.
The team researches and monitors investments using independent and proprietary research tools. Performance over time is driven by the avoidance of negative credit events and by the inclusion of complementary low risk, low volatility investments to produce returns with minimal correlation to both the equity and fixed income markets.
For over three decades, LIM has used merger arbitrage and other complementary investments as a part of its flagship arbitrage strategy. The strategy typically invests 60% or more of assets in equity or fixed income securities of companies involved in mergers and acquisitions.
Based on this experience and the firm’s fixed income capabilities, LIM offers a SPACs strategy also designed to deliver strong absolute returns against low realized volatility.
The firm also leverages its’ credit and event-driven investment experience through the Opportunistic Credit strategy. The strategy focuses on event-driven corporate credit and special situations to target stable, risk-adjusted returns with limited correlation to equity or credit markets.
Asset allocation is customizable and can incorporate different volatility, leverage, and position sizes to accommodate each client's tolerance for risk.