Eidesis Capital LLC is a specialty investment management firm focused on the structured credit markets. The Firm is based in New York City and manages approximately $400 million in investments.

Structured credit markets have experienced explosive growth but are quite inefficient due to the high complexity of the instruments and a deeply fragmented investor base. Eidesis uses a contrarian value approach to identify fundamental relative mispricings and/or deep value distressed opportunities in the structured instruments. Inefficiencies and regulatory constraints of many market participants often exacerbate cyclical pricing imbalances and provide opportunities for investors with specialized expertise and a medium-term investment horizon.

Eidesis targets investments offering compelling cash flow-driven risk-adjusted returns over an investment horizon of 2 to 5 years.  The longer horizon reflects the time often necessary for a contrarian value thesis to be validated in a highly inefficient marketplace. Typical investments include long and short positions in synthetic credit default swap indices and tranches (“CDX”) and collateralized debt obligations (“CDOs”).

The Firm was founded in 1998 in connection with a management buyout of the CDO business from St. Paul Travelers. The Principals of Eidesis, Simon A. Mikhailovich, Michael H. Sollott, and Xin (Jim) Wang have been engaged in the structured credit markets since 1996 and were among the earliest market entrants. Based on the insights gained over two full credit cycles, the Principals developed and validated a proprietary investment methodology tailored to address fundamental, quantitative, legal and operational aspects of structured credit instruments.

Eidesis’ investment process combines fundamental credit analysis of the underlying assets with proprietary securitization analytics, all within a comprehensive risk management framework. Proprietary analytical and risk management tools include a database of some 8,000 underlying credit risk securities, over 300 custom CDO and CDX models and a library of CDO transaction documents. The seasoned team of 10 professionals has over 66 years of combined credit experience and 56 years of structured finance experience.