USDR Investment Strategy

USDR's primary investment philosophy and strategy is the result of the Co-Portfolio managers' combined 50 years of experience in distressed, bankruptcy and special situation investing. Their success as investors is rooted in the overriding view that investment opportunities should be viewed through the lens of a distressed credit analyst - requiring a focus on the combination of in-depth legal due diligence and fundamental bottom-up analysis. Detailed legal and financial analysis must be performed on all potential investments and when identifying broader investment themes that can be expressed across the portfolio. Expression of each of the Firm's themes will require a level of knowledge and understanding that will allow for the funds to be more concentrated in their overall exposure.

  • Identify alternative event-driven investment opportunities with emphasis on distressed and special situations, and themes that can be expressed through various investments.
  • Identify undervalued securities with a significant corporate event, such as a corporate restructuring, to act as a catalyst to realize true value. Determine the broader thematic impact of specific events in certain industries and across asset classes.
  • Identify bankruptcy/insolvency cases that contain undervalued assets and determine relative value among all levels of the capital structure to maximize risk-adjusted returns.
  • Identify mispriced asset-backed investment vehicles with a focus on hard asset values and the potential for enhanced returns.
  • Actively monitor and manage investment positions for opportunistic rotation due to specific developments and/or evolution of themes that can be identified across the portfolio.
  • Monitor target companies and capitalize on new company specific financing opportunities, such as debtor-in-possession financing and rights offerings.