Strategies

To truly understand Polygon’s strategies, you have to consider our motivation. We believe we are in the business of maximizing investment returns, rather than building AUM. Our focus is concentrated on structural alpha, the bedrock of opportunity on which strategy is built. That is our primary consideration and everything follows from there.

We seek to build investment vehicles that leverage our specific areas of expertise and track records. We are focused on investing in areas where there is the opportunity for enduring alpha generation, and on working with groups and individuals that have demonstrated their ability over different business cycles. Our strategies do not compete with one another. While all our strategies are targeted, our investment teams collaborate when appropriate, participate in firmwide risk discussions, and share an infrastructure platform. This approach allows each team to focus on its opportunities while having the benefit of other market perspectives.

For each strategy, Polygon seeks to ensure compatibility of the underlying assets and strategy terms (e.g. liquidity and capacity) and alignment of our investors’ interests with our own.  Our approach is to maximize investment returns as opposed to assets under management.

Convertible Securities

Polygon’s convertible bond strategy focuses on convertible securities in Europe and North America, leveraging our presence in New York and London to construct a single, cohesive portfolio across regions. In contrast to many convertible-focused hedge funds, we favour a concentrated and heavily-researched portfolio with a focus on low correlation and catalyst-driven opportunities. We leverage our substantial direct event-driven and convertible expertise, along with our fundamental credit/equity analysis and portfolio management skills to build this portfolio.

This strategy is led by CIO Mike Humphries.

European Event Driven Equities

Polygon co-founder Reade Griffith has been a major European Event Driven Equities and M&A investor since the mid-1990s. The strategy is founded on a diversified, catalyst-driven portfolio that exhibits a low correlation to European equity markets. A thoughtful, size-constrained approach allows a focus on more attractive and less-followed opportunities while remaining nimble. These include:

  • Corporate Restructuring: participation in recapitalisations and balance sheet deleveraging via equity issues
  • M&A: favouring hostile, cross-border or otherwise complex transactions more likely to be misunderstood by the market
  • Dislocation: medium-duration, high-conviction trades with significant upside potential
  • Special Situations: “piggybacking” on corporate activism and/or pre-deal opportunities
  • This strategy is led by CIO Reade Griffith and Nicolas Dautigny.
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