Investment Philosophy

At Solus, the primary goal is to provide investors with optimal risk-adjusted returns. All investments are based on strong, bottom-up fundamental analysis, while taking into account a dynamically changing macro environment. Given that most of our investments are event-driven in nature, our returns are not expected to be beholden to beta-driven markets, but rather, are expected to be functions of idiosyncratic catalysts. Solus is agnostic as to where we invest within a corporate capital structure. Our objective is to put capital to work in the area of a capital structure that offers the most attractive risk-adjusted returns.

We evaluate investments in high yield loans and bonds, par or distressed, as well as subordinated or mezzanine securities, equities and trade claims. With roots in credit and distressed investing, we are focused on valuation; however, we believe our competitive advantage can be attributed to our integration of a strong fundamental research process, market trading expertise, and comprehensive risk management.

The Portfolio Managers are ultimately responsible for the final selection of portfolio investments. As part of the portfolio construction process, the investment team evaluates a number of factors including the following:

  • Potential risk-adjusted return profile and maximum estimated downside
  • Portfolio guidelines and risk parameters
  • Optimal portfolio construction
  • Market liquidity and market trading technicals.