The flagship strategy of Contrarian Capital Management incorporates all aspects of the distressed asset class.

The strategy has a continuous track record from 1986 and has never used leverage.

The strategy takes the best investment ideas generated throughout Contrarian and utilizes all 27 investment professionals.

The portfolio construction is as follows:

• 80% senior investments, including U.S. Performing Debt, European Performing Debt, Bankruptcy/Trade Claims, and Emerging Market Debt.       

• 20% post reorganized and distressed equity investments.  

We target “good companies with bad balance sheets” and try to create positions at 5 times anticipated cash flow or less.  We try to have different themes in the portfolio so that one type of event or financial shock will not affect the entire portfolio.  We use a “top down” approach in targeting industries that we expect to improve within the next 12 months for long positions and those where we expect material deterioration for short positions.