Three Pillars of Whitebox
At Whitebox we believe our investment success rises organically out of our organizational culture. The organization is the process.
Our culture is founded on three pillars: our investment principles; the close collaboration of our diverse investment team; and “radical conservative” asset allocation. Because we repeatedly revert to the principles and work collaboratively, our investment process is often more iterative, even more organic than linear.
- Roadmap for generating potential return by reducing risk
- Summarized in Whitebox Investment Principles, guiding Whitebox team through every trade
- Stable process—essential, since inception, for decoding often frantic market change
Collaboration across markets/capital structures crucial to:
- Efficient, security-agnostic trade structure
- Identifying relative mispricings
- Non-obvious trades: “niche of one”
- Big Toolbox: Equity-Quant, Equity-Fundamental, Credit, Capital Structure Arbitrage, Distressed, Structured Products, Convertible Arbitrage, Legal Claims, Macro, Option Arbitrage, Relative Value
- Big Sandbox: U.S., Europe, Asia
- Radical: Investment concentration is driven by asymmetry of risk and reward not institutional inertia. Deploy capital rapidly to asymmetric opportunities regardless of prior prejudices.
- Conservative: Conventional is NOT conservative. Conservative means never accepting a risk without an asymmetric potential reward. A manager who identifies lack of opportunity in a standard strategy is as valuable as someone who discovers a new trade.