Our Strategies

We are organized in three broad areas: Event Driven, Fixed Income and Energy. In total, we employ over a dozen distinct sub-strategies.

Across these strategies, we seek to combine equity and fixed income skills and a relative value catalyst-driven approach. Our investment professionals focus on the full spectrum of "equity to credit" and "private to public" transactions. While we strive to pursue traditional opportunities in each of these areas, we also work to expand upon traditional opportunity sets by sourcing and evaluating opportunities that capitalize on market dislocations. We use a systematic approach in an effort to identify and capture alpha.

Event Driven

• The Event Driven strategies invest in listed companies where an announced corporate action or other catalyst creates an opportunity to capture alpha from a dislocation in security valuations. Our strategies include both Risk Arbitrage and Value with Catalyst investing.
• We seek alpha through rigorous fundamental analysis of individual situations; proper quantitative valuation of complex considerations; and thoughtful portfolio construction and risk management. We employ a robust tool set and IT environment to both enable and scale our investment processes.
• We seek to structure investments so as to express our fundamental views in the most forgiving way. To do so, we may invest in the credit and equity securities and derivatives of a given company.
• In Value with Catalyst, we seek to rely on our own idea flow for investment opportunities, and to apply a private market diligence view to our research.

Fixed Income

• The Fixed Income strategies invest across a broad range of asset classes and product forms. We invest in corporate, real estate and consumer credit-driven assets; both directly and through securitization instruments; and in both the primary and secondary markets. We employ both quantitative and fundamental skill sets in our strategies.
• We seek to select and structure investments that yield attractive returns across the broadest range of potential states of the world. The group allocates capital flexibly: allocating across sub-strategies to the best opportunities, and scaling investments when market dislocations offer more promising returns. We have invested in certain longer-dated strategies, believing that such strategies offer attractive opportunities.
• Four major investment sub-strategies in Fixed Income are:
  • Mortgages
  • Corporate Credit
  • Convertible Bonds
  • Structured Solutions

Energy

• The Energy strategy invests primarily in the North American energy sector by providing capital to public and private energy companies to finance growth. Investments are typically custom-structured and negotiated. Magnetar may invest across the capital structure in equity, preferred equity, convertible debt or debt.
• The strategy also invests in energy-related securities in the public markets on an ongoing basis.
• The strategy does not generally invest directly in underlying energy commodities, except to hedge portfolio risk exposures.