Samuel Freshfields | Strategies

Individual Attention. Customized Advice.

Working together with clients to fulfill their investment objectives

 

Our experience in investing across the capital structure has enabled us to develop a diverse portfolio of global investment strategies in several categories, including private equity and listed equities. Importantly, we have been able to expand our methods mostly through getting involved into closely adjacent industries, which we have done by identifying markets that:


1. We believe we have a better chance of making profits;

2. We can exploit in a way that is consistent with the firm's risk-control philosophy.


Depending on their investor type (institutional or individual), liquidity profile, and investment horizon, investors can access our strategy offerings through various structures and vehicle types.

Competitive Advantages

Experienced investment professionals, a global platform, and a unifying investing philosophy are among the company's competitive advantages. The investment philosophy comprises six tenets that represent our culture of investing: risk control, consistency, market inefficiency, specialization, bottom-up analysis and disavowal of market timing.

Business Fundamentals

A set of basic business values outlining Samuel Freshfields' dedication to quality in investing, common interests with clients, a collaborative culture, and a disciplined, opportunistic approach to expanding products round out our competitive edge.

Clientele Oriented Strategy Approach

Samuel Freshfields has a significant and distinguished clientele as a consequence of our persistent implementation of our concept and beliefs. Pension plans, enterprises, state retirement plans, endowments and foundations all over the world, and sovereign wealth funds are among Samuel Freshfields' global clientele.

Private Equity

Our private equity strategies include a wide range of markets and locations, and they integrate classic private equity and distressed-for-control activity. We invest in companies that we believe are undervalued, using a flexible and opportunistic approach. We aim to increase shareholder value by implementing important strategic and tactical initiatives such as right-sizing capital structures, optimizing operations, strengthening core companies, and developing new growth platforms. To get greater access to investment capital, our teams depend on strong sector knowledge and broad proprietary networks, and they reflect Samuel Freshfields' emphasis on risk management and downside protection.

 

Corporate Private Equity

Our corporate private equity strategies are focused on acquiring ownership of undervalued companies in a wide range of industries and sectors. Our corporate private equity strategies may also seek platform investments in industries that are undergoing fundamental transformation in structure.

 

Special Circumstances

Our strategy related to special circumstances takes a flexible approach to finding control-oriented finance and equity investments in middle-market companies that are undergoing uncertainty or some other type of temporary business disruption. The strategy combines credit and private equity investing experience, with the goal of generating good risk-adjusted returns by focusing on investments with strong upside potential, making profits on the cheap, and enhancing operations and capital structure.

 

Real Assets

Samuel Freshfields' global presence, multidisciplinary expertise, extensive network of industry specialists, and strategic partnerships with operating partners all contribute to our real assets platform. We follow Samuel Freshfields' investment strategy, emphasizing the acquisition of assets in which we feel the risk-reward ratio is asymmetrical. We also place a high value on building partnerships and gaining a competitive advantage in terms of sourcing, purchasing, managing, and exiting investments.

Real Estate

Our real estate strategies cover foundation, valuation, and opportunistic real estate, and they target a diversified range of assets across practically all areas of real estate. In the United States, Europe, and Asia, we seek equity and loan investments in a variety of property types. One of Samuel Freshfields' largest investment teams, our global investment team combines joint-venture agreements with high-quality real estate operators to generate long-term improved performance throughout investment cycles.

 

Infrastructure

Our infrastructure strategies aim to invest in real assets and infrastructure-related enterprises in the energy and transportation sectors, where we can earn a significant return on our investment. Our team targets infrastructure investments in which we may pursue value-creation methods by focusing on assets and businesses with both downside protection and significant upside potential.

Listed Equities

Our listed equity strategies are focused to invest in inexpensive equities in certain regions. We explore equities trading at a discount to their real worth by combining fundamental analysis with in-depth region and industry knowledge. Our better understanding, we believe, helps us to discover attractive investment possibilities while limiting downside risk.

 

Emerging Markets Equities

Inefficiencies in emerging markets are related to companies that are frequently under-analyzed and securities that are frequently mispriced. We strive to generate attractive returns in equity positions by consolidating our team's global presence, using a bottom-up approach, and adapting our in-depth industry knowledge. We are also taking into account macroeconomic and market conditions within our emerging markets equity strategies.

 

Value/Other Equities

Our value and other equities methods are related to companies with large asset values and solid business concepts that are undervalued but trading at substantial discounts. We follow a bottom-up, value-oriented investment approach in these strategies, being in connection with other Samuel Freshfields teams in order to gain additional industry and analytical insights. It helps us invest in equities and equity-related securities in various markets and locations.

Credit

Based on our credit strategies, we invest in liquid and illiquid assets sourced directly from borrowers as well as through public marketplaces. We invest in a variety of high yield bonds, convertible securities, leveraged loans, structured credit instruments, distressed debt, and private debt, with a primary concentration on rated and non-rated debt of sub-investment grade issuers in developed and emerging economies. Even though our credit strategies have a different investment objective and risk-return profile, they are all based on Samuel Freshfields' underlying investment philosophy, which prioritizes risk management and reliability.

 

Distressed Debt

We have substantial experience in the market for financially distressed debt, which demonstrates the market inefficiencies we seek as a firm. Our strategy is to combine loss protection, which is typically obtained by purchasing claims on assets at a discount, with the considerable benefits realized by returning companies to financial viability through restructuring.

 

High Yield Bonds

Members of our team have been managing high yield bonds together since they first became popular as an investment strategy, long before Samuel Freshfields was founded. By investing in performing bonds of creditworthy firms, our high yield bond strategies strive to deliver superior risk-adjusted returns. Our strategy implies fundamental credit analysis as a path to superiority on a global scale.

 

Senior Loans

Our senior loan strategies are focused on issuers' senior secured debt. We want to get a good total return while maintaining our capital and avoiding defaults. The tactics benefit from Samuel Freshfields' senior loan teams' considerable knowledge and expertise, as well as our attention on underlying, bottom-up credit analysis.

 

Convertible Securities

Convertible securities' complex nature might drive mainstream stock and bond investors to miss them, resulting in an inefficient market and prices at which convertible securities can provide equivalent returns without comparable risk. Our strategy focuses on finding assets that offer the best value — those that are expected to capture a large portion of the appreciation of the equities into which they are converted while limiting downside risk.

 

Multi-Strategy Credit

Our multi-strategy credit solutions give clients a single point of entry to Samuel Freshfields' full credit platform. Our core Global Credit strategy aims to generate strong total returns and current income while lowering volatility through credit asset class diversification. Our Absolute Return Income strategy depends on clients' requirements for liquid credit portfolios freed from standard benchmarks that strive to deliver a respectable amount of return while mitigating risk.

We consider macro-forecasting is not necessary for investing, thus we arrange portfolios based on our bottom-up analysis of relative value between locations, credit asset classes, and issuers. Our multi-strategy credit investment options are defined and executed in a very collaborative manner, with a wide range of credit research professionals from across the world.

The primacy of risk control

Our goal is not superior investment performance but superior performance with less-than-commensurate risk. Above-average gains in good times are not necessarily proof of a manager's skill; it takes superior performance in bad times to prove that those good-time gains were earned through skill, not simply the acceptance of above average risk.

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