Restructurings and Value:

 
This category consists of investments in restructuring companies that are undergoing significant corporate events such as spin-offs, recapitalizations, litigation events, strategic realignment, and other major changes.

It also includes so-called “value” investments in securities that we believe are underpriced relative to their intrinsic or fundamental value or which are expected to appreciate in value if circumstances change or an anticipated event occurs.

Our restructuring and value investments are frequently hedged with short positions in stock market indices or individual company stocks, or other derivative instruments.

While these investments commonly are made in common stock and preferred equities, we seek to find the security or instrument in the capital structure that we believe offers the best risk/reward profile.