About Us

Strategy

Mangrove employs an opportunistic, value-oriented strategy. In an effort to focus our attention, we concentrate on pre-identified situations where we believe there is a higher likelihood of finding investments. In particular, we attempt to exploit opportunities resulting from market dislocations, company specific news, and forced selling, with an emphasis on smaller issues and process or legal complexity. We feel these attributes more frequently result in mispricing. We have a methodical screening-based sourcing model that allows us to identify and cover these recurring opportunities.

We generally categorize investments to one of four core strategies: long/short, capital structure arbitrage, stressed and distressed, and liquidations and arbitrage. In the long/short book, the long side tends to focus on 1) restructurings, 2) companies trading at substantial discounts (particularly asset heavy businesses) and 3) underappreciated businesses trading at low multiples. On the short side, we focus on companies that are executing a flawed business plan or strategy, engaging in fraud, or capitalizing on a fad. We manage the long/short book to be well hedged with a beta and delta adjusted net exposure of between 0-30% net long. We believe the capital structure arbitrage investments are naturally hedged, stressed and distressed investments are subject to process and/or contractual protections, and liquidations and arbitrage investments are hard catalyst driven. As a result, while these investments are subject to mark-to-market movements, their final values are generally not market dependent.