THE CONTRARIAN PHILOSOPHY
Our 30 years of distressed investing experience, broad global network, and considerable knowledge of the restructuring process we believe provides us with a competitive edge. The Contrarian team actively looks for “off-the-run” opportunities that have significant barriers to entry, and companies that are less heavily trafficked by larger hedge funds and long only managers.
Experience and continuity of senior management
One of Contrarian’s most distinctive features is the stability and continuity of its founding partners. Contrarian is a distressed investing specialist with one of the most stable portfolio management teams in the industry. Jon and Janice have been managing portfolios of distressed securities together since 1986 (joined by Gil in 1993). Portfolio Managers Xiao Song, Bill Raine and Brett Rowland joined Contrarian in 2003, Keith McCormack and Karim El Khoury in 2004, and Graham Morris in 2006. We believe this continuity of senior management provides Contrarian with a competitive edge in sourcing and analyzing investment opportunities, as well as navigating the portfolio through multiple business cycles.
Extensive, comprehensive in-house research capabilities
Contrarian performs all research in-house. To the extent analysts receive information from outside sources, they always undertake independent evaluation utilizing a team approach to analysis, so that ideas are rigorously dissected by multiple investment professionals from different perspectives. Results are continuously shared, reviewed and challenged, ultimately leading to greater confidence in the final recommendation. The process is designed to ensure that errors in fundamental analysis are kept to an absolute minimum.
Investing in ‘off-the-run’ opportunities
We often search for “off-the-run” distressed investment opportunities and have particular expertise in privately-traded instruments with significant barriers to entry (e.g., trade claims). Our team is large enough to thoroughly investigate virtually any opportunity, yet we believe we have carefully managed the size of our portfolios, so that these positions can have a meaningful impact on performance.
Ability to efficiently allocate capital throughout the distressed cycle
Our team approach to investing provides for efficient and effective sourcing and vetting of ideas and allows us to quickly identify parts of the asset class with the greatest opportunity at any point in time. With deep expertise in all phases of distressed investing (senior secured debt, trade claims, direct lending, real estate, reorganized equity, etc.) we are uniquely positioned to capture returns throughout the entire distressed cycle.
Our approach provides dedicated efforts to opportunities worldwide, with the ultimate goal of having for the ability to invest in any attractive distressed/event driven value opportunity in the world. Investment professionals are located in affiliated offices in Greenwich (CT), Paris, London, São Paulo and Hong Kong. Language capabilities include French, German, Spanish, Italian, Portuguese, Cantonese, and Mandarin.
Contrarian selectively becomes actively involved in restructurings when circumstances warrant (i.e. when we believe that we can add value to the process and realize significant returns for our investors). All of Contrarian’s partners and most of the portfolio managers have strong experience in sitting on and/or running creditor committees, boards of directors, ad hoc committees, etc., and in successfully directing corporate restructurings.