Our liquid alternative strategies, encompassing approximately $[•] billion of assets under management as of September 30, 2015, primarily seek to deliver compelling absolute risk-adjusted returns relative to publicly traded stocks, hedge funds, bank loans, high yield bonds or other investment types. Our liquid alternative strategies include credit opportunities, global special situations and global asset-backed funds, as described below:
• Structured Credit: We invest across the capital structure of collateralized loan obligation vehicles (CLOs) and in directly-originated asset-backed investments representing diversified portfolios of consumer and commercial assets. We seek to construct diversified portfolios of asset-backed investments that benefit from having downside protection and less correlation with the broader credit markets.
• Credit Opportunities: Our “go anywhere” credit opportunities strategy seeks to capitalize on market inefficiencies and relative value opportunities while managing duration and interest rate risk. We principally invest or take short positions in U.S. and European debt securities across the capital structure, including opportunistic liquid credit, special situations and structured products.
• Special Situations: We seek to capitalize on market trends and dislocated assets by flexibly deploying capital, leveraging our deep credit expertise, proprietary research and robust sourcing model. We invest opportunistically across a broad spectrum of investments, including corporate debt, rescue capital, private asset-backed investments, post-reorganization securities and non-performing portfolios.