Watershed is a fundamental value investment firm that maintains an opportunistic credit-orientation, or return on assets, approach. It seeks to achieve returns ordinarily associated with equity investments without the risk to principal that equity investments ordinarily entail.
Watershed invests in a wide range of securities and situations that it believes are inefficiently held or financed, are undergoing change or in which Watershed believes the investment risk is misunderstood and therefore mispriced. Many of Watershed’s investments are expected to be in companies and assets that are affected by change, such as a cyclical downturn, a secular business shift, a liquidity event, a business misstep, major litigation, legislative or regulatory change, or a bankruptcy or restructuring. It also expects that it may be an active participant in corporate recapitalization or reorganization processes and Watershed investment professionals may sit on official creditors’ committees, steering committees or boards of directors if Watershed believes its active participation can reduce risk or enhance returns.
As an absolute return focused manager, Watershed seeks to employ both portfolio and position risk management through the use of various portfolio limitations and hedges. The firm also uses shorts to express direct investment theses.
Watershed invests in a wide range of securities and situations that it believes are inefficiently held or financed, are undergoing change or in which Watershed believes the investment risk is misunderstood and therefore mispriced. Many of Watershed’s investments are expected to be in companies and assets that are affected by change, such as a cyclical downturn, a secular business shift, a liquidity event, a business misstep, major litigation, legislative or regulatory change, or a bankruptcy or restructuring. It also expects that it may be an active participant in corporate recapitalization or reorganization processes and Watershed investment professionals may sit on official creditors’ committees, steering committees or boards of directors if Watershed believes its active participation can reduce risk or enhance returns.
As an absolute return focused manager, Watershed seeks to employ both portfolio and position risk management through the use of various portfolio limitations and hedges. The firm also uses shorts to express direct investment theses.
