We invest primarily in companies with stable cash-flow profiles across a range of sectors, including:

• Transportation: Aviation, Automotive, etc.
• Real Estate: Rental, Home Rehab and Resale, New Home Development, etc.
• Energy: Solar Energy, Consumer Electric Retailing, etc.
• Consumer: Healthcare, Consumer ABS, etc.

Our mandates enable us to invest in the equity and/or debt of companies such as mortgage lenders, auto lenders, etc. These firms are often platforms filling a market niche that has grown after the Global Financial Crisis.

We participate in certain credit strategies over time on an opportunistic basis.

• Investment in corporate credit (and mortgage) securities
• Implementation of quantitatively-based strategies that rely on modeling security and portfolio credit risk and/or discount to modeled fair value
• Examples of these strategies include investment in collateralized loan obligations (CLOs), portfolios of corporate credits, convertible bonds, and mortgage securities

We invest in portfolio participation structures by which financial institutions may obtain regulatory capital relief.

We implement transactions in various ways, with risk exposure to institutions' underlying balance sheet assets, ranging from investment grade to high yield exposures, and beyond.

This strategy fills a market need that has grown since the Global Financial Crisis.

Our Systematic Risk Arbitrage strategy – also known as “Merger Arbitrage” – was established under the premise that this type of investing may offer excess returns that can be isolated based on certain M&A deal characteristics, including geography, market capitalization, and transaction and deal type.

We believe that by systematizing this strategy to refine deal selection and to manage strategy risk, we may be able to harness the associated premia more effectively.

Our Systematic Convertible Arbitrage strategy seeks to buy “long” a convertible security and sell “short” a portion of the underlying stock into which the convertible security may be exercised, in instances where our models measure the security to be theoretically cheap and relatively mispriced. The strategy may also seek to hedge a portion of the interest rate risk.

Our Equity Statistical Arbitrage strategy seeks to capture liquidity risk premia typically associated with the tendency for equity prices to revert to the mean from short-term dislocations that may not be associated with a change in fundamentals. Mean reversion strategies typically look to monetize opportunities created by short-term market overreactions.

Our Systematic SPAC strategy seeks to efficiently capture potential excess returns associated with SPAC investing while retaining much of the downside protection inherent to the structure. The strategy utilizes a rules-based framework that builds upon Magnetar’s active SPAC investment management experience and deep relationships with underwriters and certain sponsor teams. The strategy also may seek to hedge a portion of the equity market beta.