Investment Philosophy and Strategy

During King Street’s 25+ year history, we have applied a consistent investment philosophy through a centrally-managed investment team, which allows the greatest flexibility to opportunistically deploy capital.

Fundamental, research-intensive approach
  • 
Primary focus on absolute value (vs. relative value)
  • In-depth bottom-up analysis
  • Conservative valuation methodology and extensive downside case analysis

Asymmetric risk/reward profile
  • 
Goal of creating “option-like” positions
  • Seek the best risk/reward trade within a capital structure

Flagship and European Funds:

Global long/short credit and event-driven focus
  • 
Distressed, stressed and out-of-favor situations
  • Shorting of investment grade and high yield debt
  • Capital structure trades
  • Special situations involving spin-offs, litigation plays or other events
  • Deep value situations where we believe there is a particular catalyst that will unlock
      that value

Opportunistic approach to investment selection
  •
Flexibility to shift resources and capital across opportunities meeting our disciplined
      investment criteria
  • Portable philosophy across multiple asset classes, industries and geographies
  • Invest across the capital structure – in bank debt, corporate bonds, trade claims,
      equities, CDS, options and other derivatives

Real Estate Fund:

Opportunities across all major property types and regions, focused on situations which are
  • Out-of-favor
  • Complex
  • Misunderstood
  • In transitional markets

Investments which exhibit
  • Supply/demand imbalance
  • Motivated seller
  • Dislocated market
  • Under-managed/invested asset