WATERFALL ASSET MANAGEMENT, LLC

Thesis

The firm specializes in the structured credit market, with a primary focus on asset-backed securities (ABS) and loans, but also invests in real estate and private equity. Their core strategy involves identifying relative value in structured credit and loan products globally, employing a disciplined approach with proprietary trading ideas, rigorous cash flow stress testing, and in-depth due diligence on both performing and distressed assets. They actively manage market risks through leverage and hedging, and maintain a proactive stance in position management. Their expertise extends to specialty finance, including commercial mortgage REIT sectors, and they navigate complex credit and regulatory environments. Beyond structured credit, Waterfall has a private equity strategy targeting the lower middle-market financial services sector and a commercial real estate equity strategy. They source deals through secondary trading and direct negotiations with specialty finance companies. The firm manages 31 active private funds with a total gross asset value of $11.37 billion, primarily allocating assets to hedge funds (99%). They have also invested in Axios Advisory Group, ERISApedia, and Agora Data, and hold significant positions in Rithm Capital Corp. and Pennymac Corp., as well as real estate investment trusts like Camden Property Trust, AvalonBay Communities, Inc., Apple Hospitality REIT, Inc. an

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