FROM CHALLENGE
TO OPPORTUNITY    
Approach
  • Invests primarily in stressed and distressed corporate credits undergoing a structural dislocation

  • Seeks a well-defined catalyst likely to resolve within 12 to 18 months

  • Exploits mispricings across complex $1bn+ capital structures

  • Unique hedging and trade structuring, engineers desirable risk/reward payout profile

  • Targets low to mid-teen net portfolio returns, regardless of market conditions

Our hedged and catalyst-driven approach alleviates the need to simply buy assets below recovery

MARKET OPPORTUNITY
Profiting from orphaned securities

A6 seeks to exploit price inefficiencies created as companies become “stressed” and investor sponsorship erodes

MARKET OPPORTUNITY
  • Limited addressable market

  • Illiquid and crowded situations

  • Deeply discounted assets

  • Longer workout periods

  • Unhedged

  • Binary outcomes

A6 CAPITAL
  • Situations void of sponsorship  

  • Event driven, stressed situations with extractable value

  • Relatively liquid capital structures

  • Shorter duration to catalyst

  • Tailored hedges optimizes risk/reward profile

LONG ONLY FUNDS
  • Volume-driven High Yield or Loan Funds and CLOs  

  • Credit beta

  • Rules-based protocol

  • Limited expertise in distressed process  

  • Focus on a singular part of the capital structure

  • Unhedged

Why A6?

A differentiated approach to orphaned securities

OPPORTUNISTIC, GENERALIST APPROACH
Concentrated portfolio of best ideas driven by macro observations
Does not rely on any singular macro factor or market condition to achieve target returns
SEEKS CONSISTENT RETURNS ACROSS MARKET CYCLES
Unique hedging process creates favorable catalyst-driven payout profile  
STRUCTURAL DRIVERS OF OPPORTUNITY SET
Target orphaned securities, operating between the silos of high yield and distressed
FLEXIBILITY ACROSS CAPITAL STRUCTURE
Utilize multiple securities to improve risk/reward
COVENANT EXPERTISE
Unlock value via exploitation of weak credit documentation
REDUCED TIME TO RETURN REALIZATION
Seek a well-defined catalyst likely to resolve within 12 to 18 months  
Process
IDEA GENERATION
Macro Assessment
  • Create road map for investment themes

Quantitative Screens
  • Generate ideas via systematic tools to limit reliance on the sell-side and avoid crowded trades

Catalyst Identification
FUNDAMENTAL RESEARCH
Fundamental due diligence
  • Financial analysis

  • Covenants analysis

  • Process breakdown

Utilize outside advisors, if appropriate
TRADE STRUCTURING
Identification
  • Utilize hedging tools to mitigate tail risks using asymmetric/ idiosyncratic hedges

Optimization
  • Alter payoff profiles to more favorably skew investments

  • Typically use intra-capital structure equity options

PORTFOLIO CONSTRUCTION
Independent Strategy
  • Create a portfolio of event-driven strategies, designed to limit duration/beta

  • Typical duration is 12 to 18 months

Market Monitoring
  • Apply leverage in-line with expected volatility

Process: Hedging
Illustrative Example

Budget portion of upside in order to dramatically reduce downside risks

TEAM

MICHAEL FINE

Founder, Chief Investment Officer and Chief Executive Officer

Prior to founding A6 Capital, Michael was Head of Corporate Credit on the investment team at LibreMax and a member of the investment committee. Prior to joining LibreMax in June 2015, Michael was at Carlson Capital from 2009 to 2015, investing across the capital structure in high yield, stressed and distressed situations, with a primary focus on financial services, real estate related companies, and became Partner in 2013. During 2008 and 2009, Michael worked at Patriarch Partners as a distressed analyst. From 2005 to 2008, Michael was the distressed debt and special situations analyst at Gracie Capital. Prior to 2005, he spent four years at Compass Advisors advising creditor committees and debtors involved in operational restructurings and recapitalizations. Michael began his career at Monitor Consulting Group as a strategy consultant. Michael graduated with Great Distinction from McGill University in 2000, with a Bachelor of Commerce degree, major in Finance and minor in entrepreneurship.

ALEXANDER BROWN

Co-Founder, Head of Research and Trading

Previously, Alexander was a Director of Corporate Credit on the investment team at LibreMax and a member of the investment committee. Prior to joining LibreMax in 2017, Alexander was an Investment Associate at Credit Suisse from 2014 to 2017, initially on the Distressed Credit and Special Situations Desk, later moving to the Credit Investment Group within Credit Suisse Asset Management where he led distressed investing and co-ran restructurings and workouts. From 2013 to 2014, Mr. Brown worked as a Leveraged Finance and Restructuring Investment Banker at Canaccord Genuity and from 2012 to 2013, he worked at ICON Capital as a Direct Lending Investment Analyst. Mr. Brown graduated with a B.A. in Economics, and a minor in Business Studies from New York University in 2012.

ANDREW STROBER, CPA

Chief Operating Officer, Chief Financial Officer and Chief Compliance Officer

Andrew was most recently the Chief Operating Officer, Chief Financial Officer and Chief Compliance Officer of Bronson Point Management LLC, designing, implementing and managing the operational and accounting infrastructure of an equity hedge fund from inception. In addition, he ran the family office for the Founder of Bronson Point. Prior to Bronson Point, Andrew was the Chief Operating Officer and Chief Financial Officer of Archview Investment Group, LP, implementing and managing the operational and accounting infrastructure of a fixed income hedge fund from inception. Prior to Archview, Andrew was the Chief Operating Officer and Chief Financial Officer of Carlyle-Blue Wave (CBW), a multi-strategy hedge fund from its inception in 2007. Prior to CBW, he was a Partner and Chief Financial Officer of H/2 Capital Partners, a fixed income real estate investment fund, from its inception. Prior to H/2, he spent eight years as a Partner and Chief Financial Officer at Ramius Capital, and was instrumental in helping the firm grow its assets under management from $250 million to over $4 billion. During 1996, Andrew was a Senior Manager at Grant Thornton in their hedge fund practice. From 1986 to 1995, Andrew was a Senior Manager at Ernst & Young, specializing in investment partnerships and assisted in building the Investment Partnership group at Ernst & Young. Mr. Strober began his accounting career at Oppenheim, Appel, Dixon & Co, and received a BS degree in Accounting and Business from Muhlenberg College in 1984.

Jeremy Skrezyna, MBA

Senior Research Analyst

Before joining A6, from 2015 to 2020, Jeremy was a Senior Research Analyst at Southpaw Asset Management where he focused on performing, stressed, distressed and special situations investments across a variety of sectors including retail, consumer, media, industrials and business services. Prior to Southpaw, from 2010 to 2015, Jeremy was a Senior Research Analyst at Andalusian Capital Partners where he focused on event-driven, stressed and distressed investments in a generalist capacity. Prior to joining Andalusian, during the Financial Crisis of 2007 to 2009, Jeremy was an Associate at Credit Suisse in the Financial Sponsors Leveraged Finance Group where he focused on executing a variety of debt capital markets transactions including, coercive exchange offers, rescue financings, non-pro rata below par bank loan amendments and regular way LBO financing syndications. From 2005 to 2007, Jeremy earned his MBA from The Wharton School at The University of Pennsylvania. Prior to earning his MBA, Jeremy was an M&A Investment Banking Analyst at Robert W. Baird and Billow Butler and a Private Equity Analyst at Mesirow Financial.  Jeremy earned his BSBA from Washington University in St. Louis in 2000.

JENNA BAKER

Head of Business Development

Before joining A6, Jenna was Head of Partner Relations at Sunriver Management where she oversaw business development, marketing and investor relations for the firm. Prior to Sunriver, Jenna was Director at Merritt Capital from 2015 to 2018 where she was a member of the firm’s Investment Committee and led both investment and operational diligence on the firm’s investments. Prior to Merritt, Jenna was a consultant at JAT Capital from 2014 to 2015 where she led several firm-wide initiatives in marketing, operations, and technology. Jenna began her career as an equity trader at Needham & Company and subsequently Credit Suisse. Jenna earned a B.S. in Physics from Harvard College in 1995.