A focused universe of event-driven and relative-value opportunities.
The investment universe centers on liquid instruments and identifiable mechanisms that may cause price and value to converge. Allocations may change as opportunity sets, financing conditions, liquidity, and risk evolve.
Why structural opportunities exist
Markets are generally efficient at pricing broad direction, but less efficient at pricing structure. Regulation, security design, mandatory deadlines, redemption mechanics, index rules, financing constraints, and forced or constrained participants can each create a measurable divergence between price and value.
These divergences are often small, temporary, and unattractive to large pools of capital—which is precisely why they may persist. The process is designed to identify them, verify the mechanism that may close them, and underwrite what happens if it does not.
SPAC and event-driven arbitrage
The anticipated flagship strategy evaluates SPACs and similar event-driven securities as contractual instruments rather than speculative operating companies. Relevant variables include purchase price, estimated trust value, redemption rights, contractual deadlines, extension terms, deal status, sponsor incentives, liquidity, and financing cost.
Potential catalysts may include:
Trust value and redemption mechanics
A SPAC typically holds proceeds in a trust account invested in short-duration government instruments. Shareholders generally hold contractual redemption rights that allow them to receive an estimated pro-rata share of the trust at defined decision points—such as a business-combination vote, an extension vote, or a liquidation deadline.
When a SPAC trades below its estimated trust value, the difference between price and estimated redemption value—combined with the time remaining to the applicable contractual date—forms the basis of the analysis.
Trust values are estimates. Expenses, taxes, amendments, delays, failed redemptions, and other factors can reduce the amount actually received. Nothing in this description implies that these securities are risk-free or equivalent to cash or bonds.
Yield-to-worst
Underwriting begins with the least favorable contractual path, not the most optimistic one.
Yield-to-worst estimates the lowest annualized return under the least favorable contractual outcome included in the analysis, based on stated assumptions. Actual results may be lower or negative due to market, credit, liquidity, financing, execution, legal, operational and other risks. Yield-to-worst is an underwriting tool, not a guarantee.
Probability-weighted outcomes
Most event-driven situations have more than one plausible path: a transaction may close, be amended, be extended, or fail; a redemption may occur early or late; terms may change. Each identified path is assigned an estimated probability and outcome, producing a probability-weighted view of the opportunity alongside the yield-to-worst baseline.
Probabilities are judgments, not facts. The framework is intended to enforce discipline and comparability across opportunities—not to eliminate uncertainty.
Complementary strategies
Fixed-income and ETF relative value
Pricing, liquidity, creation-and-redemption, financing, and cross-market inefficiencies across Treasury and fixed-income instruments.
Treasury and cash-management strategies
Short-duration government instruments and Treasury ETFs used for liquidity management and, where appropriate, relative-value opportunities. These instruments and strategies are not risk-free.
Options-based relative-value structures
Defined-risk and relative-value structures where pricing, volatility, or corporate events create attractive asymmetry.
Select special situations
Other liquid, catalyst-driven opportunities that fit the same underwriting discipline of defined catalysts and downside-first analysis.
Portfolio construction considerations
Individual opportunities may be modest; portfolio construction, disciplined execution, and repetition are intended to compound those edges over time. Construction considerations include diversification across issuers, catalysts, and strategy types; conservative position sizing; liquidity tiers and exit capacity; financing-cost and margin-stress analysis; and counterparty diversification.
Specific limits, if any, will be set out in the governing documents of the applicable vehicle.
Material strategy risks
Strategy descriptions are illustrative, may change without notice, and do not represent a commitment to employ any particular strategy or instrument. Certain techniques, including derivatives, short selling, and leverage, can increase risk and may result in losses exceeding the amount initially invested in a position. See Risk Management and Disclosures.
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