About Phoenix Investment Adviser LLC

History

Phoenix was founded by Jeffrey L. Peskind in May 2003 and launched its first investment program in September 2003.  Mr. Peskind decided to start Phoenix after the last credit crisis of telecommunications companies and internet ventures going bust.  After over 15 years in the high yield and credit markets, he believed an investment vehicle focused strictly on "stressed" bonds offered an excellent risk/reward opportunity.  By identifying companies through deep fundamental analysis that will be able to avoid bankruptcy restructuring, an investor has the potential for significant capital gains as well as high current interest payments.

Strategy 

Phoenix uses a deep value, bottoms up investment approach in the bond market.  It utilizes extensive industry contacts to source corporate bonds trading at deep discounts due to a perceived restructuring or ratings agency downgrade.  Bonds trading at deep discounts offer two very attractive qualities: High current income and a historical margin of safety in bankruptcy (recovery value).  Phoenix then begins its fundamental analysis hoping to identify companies that have enough liquidity, cash flow and covenant run way to meet interest payments and address upcoming maturity issues.

Process

Our process begins when bonds fall to deep discounts for a variety of reasons.  Industries and companies are always falling into trouble, regardless of where we are in an economic cycle.  Ratings agency downgrades, perceived restructurings and misunderstanding of industries/companies can create sharp differences between trading prices and actual value.  We look for companies with liquidity to meet interest payments, a plan to address upcoming maturities and covenant runway in any securities senior to those we are analyzing.