Minneapolis-based Groveland Capital has begun to actively market its Groveland Hedged Credit Fund to institutional investors.
Nick Swenson founded Groveland along with members of his credit team and the fund was launched in January this year.
Swenson was previously the portfolio manager and partner of Whitebox Hedged High Yield Fund from 2002 to early 2009, where peak AUM was USD1.65bn.
Swenson says: “The market environment typically offers reasonable returns via arbitrage techniques, yet generating outsized returns by leveraging the bell curve is not our game. We seek out those unusual and irregular situations that contribute extra alpha via the insight derived from careful value investment research. We believe the most attractive returns are generated when the tightly-mapped disciplines of arbitrage and hedging are combined with knowledge of special situations.”
Groveland seeks to balance arbitrage and value investing while building its portfolio around hedged credit and distressed opportunities.
“Since launch, we have been gradually building our portfolio and reinforcing processes,” says Swenson. “While today’s markets are quiet and orderly, our research indicates that the six month to two-year horizon is likely to offer compelling investment opportunities in our domain of expertise. Mr. Market will make certain that this time is different. Now is the time for us to come to the institutional market.”