Eyck Capital focuses on investments in the liquid end of the European distressed opportunity set. The firm seeks to invest across the capital structure (bonds, loans, equities, CDS), both long and short, with a low net exposure. Depending on the market environment and part of the economic cycle, Eyck Capital will allocate dynamically across stressed debt, distressed debt, and special situations equities – either with a soft or hard event. Amidst current volatility in the credit markets and defaults on the rise, the focus is on stressed debt (i.e. primarily bonds with dislocated prices, long or short) and special situations (i.e. equities which are mispriced because of credit events in their highly levered capital structures, long or short). Distressed debt (i.e. investing pre-, during or post-restructurings) will become the key area of focus as we encounter a combination of the Maturity Wall of refinancings, bank deleveraging and rising defaults due to a recessionary environment.
Eyck Capital's focus is only on the best situations and high conviction ideas, remaining nimble and investing in both large and under-the-radar trades independent of size. Eyck Capital’s investment process consists of the development of themes and asset class views in combination with fundamental distressed research across the capital structure. Liquidity and ability to exit positions are key, in combination with disciplined portfolio and risk management.