Cohanzick Management, LLC
427 Bedford Road, Suite 230
Pleasantville, NY 10570
Short Term High Yield: The short term high yield strategy focuses on opportunities in the high yield markets that arise as a consequence of traditional high yield investors selling shorter maturity, lower risk bonds in order to achieve higher portfolio yields. Additionally, high yield debt that is expected to be repaid prior to stated maturity through contractual rights or as a result of structural change may provide the opportunity to achieve an attractive return with risk reduced as a result of implicitly or explicitly shortened repayment periods.
Strategic Income: The strategic income strategy primarily focuses on what are termed "Money-Good" securities. These are debt instruments whose par value (including debt that has equal or senior priority) is exceeded by the enterprise value of the issuing company, when valued by what would be considered conservative metrics. Although the strategy will invest in both investment grade and non-investment grade securities, it is expected that the risk of loss of principal due to permanent impairment is low.
Short Biased Fixed Income: Focus on credits that are deteriorating, have inefficient capital structures and/or where securities are overvalued. Short bonds of companies that pursue shareholder-friendly activities such as increased dividends, aggressive share repurchases, fully-priced acquisitions and spinoffs, or are expected to experience deterioration due to declining secular trends, failing business models or economic weakness. At times, the strategy may incorporate long equity positions of the same issuers in order to benefit from stock appreciation resulting from these catalysts. Preference is given to shorting in the cash market, but credit default swaps may be used in certain circumstances. Long equity positions are most often expressed through exchange-traded equity option strategies given the ability to create asymmetric return profiles via equity options, but may also be effected through long common share purchases.
Credit Opportunities / Absolute Return: Focus on credits which may be misunderstood and either under- or over-valued. A typical long or short credit investment requires the ability to envision how an issuer's operating performance is likely to change, for better or worse, identifying any risks or circumstances presented by market conditions, legal obligations and capital structure. Successful investing incorporates understanding the behavior and motivations of issuers' management and participants at large. The objective is to smartly achieve high risk-adjusted total return through income and/or capital appreciation. Event-driven and value equity investing may be a major component of the absolute return strategy. By targeting individual security selection based on identifiable events, downside risk is limited to a holding period bounded by a defined timeframe, achievement of certain milestones or attainment of security-specific valuation benchmarks. The credit opportunities include: "money good" total return, special situations, trading positions, distressed, and outright shorts. The equity opportunities include: "fundamental value", event-driven, post re-org/spinoffs, arbitrage & stub equities, legal processes & liquidations, trading positions and outright shorts. The strategy may also pursue portfolio & macro investments, primarily industry, market and currency hedges.
All of our investment strategies are speculative and involve significant risk including, without limitation, the loss of principal.