A belief in the inefficiency of the small-to-mid capitalization (“SMID”) segment of High Yield forms the bedrock of Millstreet’s investment philosophy. Millstreet focusses on both long and short opportunities that can be overlooked and/or misunderstood within the SMID segment of the High Yield market. The Firm uses a fundamental value approach to identify catalyst-driven investment opportunities trading at significant discounts to underlying asset value. Typical credit investments are defined by less levered balance sheets, high free cash flow yields, more restrictive debt covenants, superior collateral packages, higher yields and coupons, shorter durations, and inherent catalysts. The objective of Millstreet Credit Fund is to exploit these risk/reward inefficiencies within small-to-mid cap High Yield over a full market cycle.
