Our Investment Approach
Varadero’s core competency is specialized credit. We focus on capital preservation and uncorrelated risk-adjusted returns. In order to achieve our investment objectives, we employ a rigorous investment process.
Varadero’s investment process seeks to maximize risk-adjusted returns by encouraging the participation of our entire investment team. Our collaborative approach is designed to create open discussion in order to maximize the value of our collective experience, which we believe leads to better investment decisions, more thoughtful execution, and prudent risk management.
Fundamental and Quantitative Analysis
We seek to conduct a rigorous review of each investment by combining deep fundamental analysis on underlying assets with in-depth due diligence. We also deploy our proprietary quantitative analytics in an effort to closely monitor portfolio risk, to re-underwrite investment positions, and to optimize investment performance.
Structuring and Execution
Varadero has deep expertise structuring public market securitizations and private investments across many asset classes. This structuring expertise allows us to develop investments that are highly tailored to generate our desired risk exposure while mitigating negative externalities.
Our trading team has extensive experience in securities markets, which allows Varadero to add value by effectively sourcing, negotiating and executing investments. In unsecuritized credit products, our team works closely with legal and other advisors to implement investments that we believe will perform across a wide range of economic scenarios.