Silverback Opportunistic Credit Fund
Silverback Opportunistic Credit Fund Overview
Rob Barron is the lead Portfolio Manager on the Silverback Opportunistic Credit Fund, which was originally launched in 2013 and became our flagship product in January 2017.
Focused primarily on small and mid-cap companies, the fund seeks to capitalize on asymmetric opportunities with truncated downside and significant upside. The fund invests throughout the capital structure and market capitalization ranges, seeking to capture strong risk-adjusted returns with low correlation to, and less volatility than, equity markets.
The Silverback Opportunistic Credit Fund is directional in nature and tactical by design allowing us to capture performance at any point in the economic cycle. The liquidity of underlying assets and our ability to pivot regardless of an economic cycle is the root of what we believe to be a competitive advantage.
Silverback Opportunistic Credit Fund Components
- Convertible Arbitrage1
- Delta Heavy (defensive/bearish)
- Delta Neutral
- Delta Light (offensive/bullish)
- Directional Convertible (outright ownership little to no hedge)
- Long Equity and/or Straight Bonds (value investing)
- Go back a year and a half
- Event Driven (spin offs, distressed, M&A, SPACs)
- New Issue Trading
- Alpha Shorts (Credit and Equity)
1. Delta Heavy, Neutral, and Light refer to the amount of equity shorted against a convertible bond. E.G. if a neutral hedge ratio of short equity was approximately 50%, a heavy hedge would may be 80% and vice versa a light hedge could be 20%
Silverback Convertible Fund
Silverback Convertible Fund Overview
Rob Barron is the lead Portfolio Manager on the Silverback Convertible Fund, which was launched in June.
In many ways, we believe the current backdrop in asset markets is similar to what was seen in the late 1990s:
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- Rich equity valuations
- Tight credit spreads
- Highly accommodative Fed
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This made for a compelling environment for convertible arbitrage
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- Stable credit/volatile stocks
- Embedded structural convexity of convertible securities allows investors to profit through volatile market swings
- Dynamics of a changing investor base created trading opportunities
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Silverback Convertible Fund Components
- Convertible Arbitrage1
- Delta Heavy (defensive/bearish)
- Delta Neutral
- Delta Light (offensive/bullish)
- Directional Convertible (outright ownership little to no hedge)
- New Issue Trading
1. Delta Heavy, Neutral, and Light refer to the amount of equity shorted against a convertible bond. E.G. if a neutral hedge ratio of short equity was approximately 50%, a heavy hedge would may be 80% and vice versa a light hedge could be 20%