We seek to construct a diversified portfolio of securities with a focus on senior "top of the capital structure" positions primarily in bank debt, bonds and "busted" convertibles as well as uncorrelated liquidations and litigations. We seek to identify both long and short alpha generating, individual ideas rather using an "asset class" based approach. Our disciplined asset growth strategy is designed to enable us to have the freedom to participate in both larger and smaller issues and in turn avoid becoming "prisoners of our size". We excel at exploiting inefficiencies in securities that are under-followed, under-researched and uncorrelated to other portfolios.

The investment professionals conduct rigorous analysis of individual long and short positions with a focus on underlying credit characteristics, business fundamentals and specific catalysts. We strictly adhere to a disciplined pricing approach that maintains a "buyer's market" mentality. We capitalize on deep relationships with broker-dealers to maximize liquidity and execution. In addition, we utilize our expansive network to provide access to limited distribution and "below the radar" investments.

Event Driven
These investments are selected based upon an anticipated catalyst (industry-wide and/or company-specific). The underlying business plays little or no role in the objective and risks associated with the investment. Catalysts include liquidations, litigation, in and out-of-court restructurings, regulatory events, legislative action and asset sales.

Special Situations
These investments are made in undervalued businesses based upon fundamental credit analysis with specific attention to free cash flow and hard assets. Southpaw retains the flexibility to pursue both large and small capitalization opportunities.

Credit Short
These investments capitalize on overvalued securities when price no longer correlates to the company's creditworthiness and is driven more by capital inflows within certain asset classes and general competition for assets among investors. Short positions may also be used strategically to hedge certain long positions or as an overall hedge to the portfolio.

Capital Structure Arbitrage
These investments capitalize on situations where the pricing of different types of securities within the capital structure of the same company become dislocated due to (i) an overreaction to specific credit or industry news or (ii) macro factors such as capital flows or world events.

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