Interdisciplinary Investing

OUR INVESTMENT CAPABILITIES

The BlueMountain platform features highly specialized investment teams and capabilities across four broad segments:

We invest in credit markets broadly across issuer quality, using fundamental, technical, and structured methods:

  • Fundamental Credit

Long/Short Credit – Fundamentally-based, long and short investments that focus on performing companies with levered capital structures.

Distressed & Special Situations – Concentrated investing in North American and European stressed and distressed companies.

  • Technical Credit – Capital structure arbitrage in HY issuers, index credit derivative relative value and arbitrage strategies.
  • Structured Credit

Asset-Based Investing – Investments across the capital structure of specialty finance companies, as well as asset-backed securities.

CLOs – CLO tranches in BlueMountain and third-party securitizations.

Insurance-Linked Securities – Instruments through which the investor/risk-taker is compensated for sharing risk tied to certain predefined insurance or other payout events with the counterparty.

Mortgages – Relative value investing in non-agency mortgage bonds and credit risk transfer products.

Synthetic Structured Credit – Pools of corporate credit, often in derivatives form to capitalize on “legacy assets” or dislocations.

  • Appraisal Claims – Utilize corporate law to seek judicial review of M&A transactions that undervalue the target company.  Provides diversifying, non-correlated exposure with favorable risk/reward asymmetry.

We invest in equities, spanning the spectrum from fundamental discretionary long/short to quantitative algorithmic:

  • Long/Short Equity –  Fundamental, long-short investing through a multi-PM, sector-based model to achieve returns through the cycle and independent of the market environment.
  • Systematic Equity – Quantitative equity market-neutral strategy.  Portfolio draws on fundamental and technical factors across geographies.

We engage in relative value investing in volatility and other global markets:

  • Volatility & Cross Markets – Global volatility trading within and across instrument types and asset classes including equity, credit, FX, rates and commodities.
  • Global Governments & Agency Mortgages – Relative value trading in US and European interest rate markets, emerging markets debt, agency mortgage securities, and US municipal bond markets.

We make privately negotiated investments in niche sectors, where a combination of structuring and operational improvements drive value:

  • Transaction Types – Flexible, privately negotiated capital solutions across Debt, Equity & Structured/Hybrid instruments.  Includes various forms of control, JV and minority capital.
  • Investment Size – $50M – $250M+
  • Investment Approach – We believe that great management teams drive great investment results.  Period.  We seek to partner with industry leaders to identify, invest, manage, and create enduring value for our portfolio companies.
  • Industries

buildingHealthcare – Provider and Facilities-centric, expanding into Payor & Service opportunities 

financialsFinancials – Specialty Finance, Insurance, Iliquid financial assets.

InfrastructureInfrastructure – Communications, Energy

WHAT WE AIM TO DELIVER

Portfolio construction that is designed to generate

attractive returns independent of macro outcomes and without “calling the market.”

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Culture of collaboration and transparency

enables us to be a strategic and solutions-oriented thought partner to our investors, delivering value above and beyond investment returns.

We seek to create customized investment products at scale to fit specific risk/return goals.

Strong risk management culture

and rigorous underwriting systems preserve capital while seeking to generate consistent performance.

Superior hedging, trading and portfolio construction enabled by timely evaluation of macro, idiosyncratic, market, and other risk factors/scenarios.

OUR DISTINCTIVE CAPABILITIES

Fundamental Research

Dedicated team of research and sector specialists with deep and specialized industry expertise develop high conviction, non-consensus views. Nimble inter-disciplinary approach to pursue a broad spectrum of opportunities.

Portfolio Construction

Non-siloed and collaborative approach across markets, instruments and liquidity spectrum, integrating diverse strategies and disciplines. Allocation of investments systematically and dynamically across multiple funds and products.

Dedicated Execution

Significant counterparty to dealers providing privileged access to dealer balance sheets and deal flow. Negotiate for favorable pricing due to scale, long term relationships and dedicated execution.

Quantitative Strategies

Continuously innovate to capture early mover premiums by blending cutting-edge technology with human judgment. Analyze and capture opportunities across 10,000+ investments daily with accuracy, confidence and speed.

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Client Service

Provide easy to access performance/risk data and knowledge/insights via servicing and communications.

Custom Solutions

Third party risk aggregation, online investor portal, regular and custom analytics.

Risk Management

Ability to rapidly aggregate/ disaggregate full complement of risk and performance drivers and have “all eyes” transparency across firm.

Operations

“Institutional-strength” scalable infrastructure to maintain robust and flexible operations and enable seamless allocations across investment funds.