Eiffel Investment Group deploys a range of smart investment strategies in European credit, leveraging its proprietary research.
FINDING VALUE IN EUROPE
We believe that Europe has a lot of potential for smart investors. It is -still- the world’s largest economy. And it is going through secular changes: a slow and bumpy political and economic integration (from 28 countries to … the united states of Europe?), a progressive disintermediation of the financing of the economy; a painful shift to a new no- growth paradigm…
In corporate credit, the deleveraging and disintermediation of financial institutions create massive directional and relative value opportunities, as alternative funding mechanisms emerge for companies. In financial credit, the transition to Basel III leads banks to overhaul their capital structure, by replacing inefficient funding instruments and pursuing transactions aimed at improving their regulatory ratios.
While a significant amount of capital has already been raised from investors seeking to benefit from the recovery of Europe, this capital has been deployed mainly in “jumbo trades”. We believe that a lot of value remains in smaller, below-radar situations. And this is precisely the focus of our strategies.
Our investment approach always starts with bottom-up name selection, based on our proprietary research on companies. Eiffel Investment Group’s research team conducts ca. 500 company research meetings per year.
We look for idiosyncratic stories, shying away from opportunities driven primarily by macroeconomic or market considerations. Our liquid funds' portfolios are typically comprised of a limited number of high conviction situational or catalyst-driven core positions. Our bespoke portfolios focus on discounted, more complex and less liquid assets in need for longer-term capital.
Capital preservation and risk management are at the core of our investment approach. Recognizing that the situation in Europe creates shorter cycles and more brutal market regime changes, we manage our deployment and exposure dynamically, with a great attention to extreme risks.