Investment Strategy

Wazee Street constructs and actively manages a high-conviction portfolio of distressed securities with embedded free options to generate superior returns. Strict adherence to well-defined underwriting criteria forms the foundation of a repeatable investment process.

Identify securities dominated by fear and uncertainty. While typically efficient, the market breaks down in the presence of fear and uncertainty, leading to price dislocation.

Construct “free options.” Wazee Street purchases corporate securities when they are trading at or below intrinsic value yet have an identifiable opportunity for substantial appreciation, thereby creating a “free option.”

Actively influence the outcome. To maximize returns, Wazee Street:
–Assesses the legal, financial and operational context surrounding an investment;
–Identifies different stakeholders and their incentives; and
–Utilizes that context to manage risk, drive resolution and create value.

investment strategy illustration

The Firm’s investment strategy allows it to minimize business risk and drive value through underwriting and actively managing restructuring risk.