Investment
Philosophy

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The common theme for Hildene is finding inexpensive assets (on both a relative and absolute basis) that are fundamentally mispriced due to factors such as inefficient markets, misunderstood structural value, product complexity, as well as other special situations. Hildene believes that a substantial opportunity currently exists in the distressed/stressed structured finance market due to poor asset underwriting, high default rates, a faulty rating process, investment bank write-downs and decreased liquidity.
Hildene uses conservative investment principles, including:
- A proven discipline of patience and innovation to find overlooked market opportunities
- Focus on capital preservation and current returns
- A “bottom-up” investment approach to identify deep value assets with asymmetric return profiles
- Broad position diversification
- Constant monitoring of asset performance, structures and counterparties
- Targeting low correlation to the broadly-based stock and bond indices
Hildene’s depth of expertise allows it to look at complex structured credit situations to uncover value opportunities. Much of the work is done in advance of an opportunity being presented – you must be Proactive to be Reactive when opportunities come to market or they will be gone and may never be seen again. |