Cohanzick Management Launches Nexus Fund

PLEASANTVILLE, N.Y., Oct. 15, 2014 /PRNewswire/ -- Cohanzick Management LLC, a specialty credit-focused investment adviser with $1.6 billion in assets under management, today announced the launch of its Nexus Fund for verified qualified investors. Nexus is a net short-biased strategy focused on capital structure mispricing and opportunistic investments in credits that Cohanzick perceives to be deteriorating or overvalued. The fund is co-managed by David K. Sherman and Bruce A. Falbaum, CFA.

"The current low interest rate environment may incentivize companies to enhance shareholder value through financial engineering," said Cohanzick founder David Sherman. "The new fund is designed to profit from this circumstance by shorting bonds of companies that pursue shareholder-friendly activities such as increased dividends, aggressive share repurchases, fully priced acquisitions and spinoffs."

The fund may also incorporate long equity positions of the same issuers in order to benefit from stock appreciation resulting from these catalysts. The strategy also incorporates identification and shorting of corporate credits that are expected to experience deterioration due to declining secular trends, failing business models or economic weakness. 

"The increase in leverage for companies pursuing growth financed with more debt may have made them vulnerable to operating risks and the volatility of an uncertain economic environment," said co-manager Bruce Falbaum. "With that in mind, we are looking for investment opportunities where spreads are widening as a result of deteriorating credit quality, as well as events that should cause such deterioration to occur."

About Cohanzick Management

Cohanzick Management, LLC is an SEC-registered investment advisor founded by David K. Sherman in 1996 and currently manages over US$1.6 billion. The firm specializes in credit opportunities in high yield, stressed and distressed securities as well as value and event driven equities. The firm advises mutual funds, private funds and managed accounts.

Additional information can be found at: www.cohanzick.com

About Investors in the Nexus Fund

Cohanzick Management's Nexus Fund is only open to accredited investors as the term is defined by the Securities Act of 1933 under Rule 501 of Regulation D. Before accepting an investment in the Nexus Fund, it must verify an investor's Accredited Investor Status.

THE INTEREST IN COHANZICK'S NEXUS FUND MAY BE SOLD ONLY TO "ACCREDITED INVESTORS," WHICH FOR NATURAL PERSONS ARE INVESTORS WHO MEET CERTAIN MINIMUM ANNUAL INCOME OR NET WORTH THRESHOLDS. THE SECURITIES ARE BEING OFFERED IN RELIANCE ON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OF 1933 AND ARE NOT REQUIRED TO COMPLY WITH SPECIFIC DISCLOSURE REQUIREMENTS THAT APPLY TO REGISTRATION UNDER THE SECURITIES ACT OF 1933. THE SECURITIES AND EXCHANGE COMMISSION (THE "SEC") HAS NOT PASSED UPON THE MERITS OF OR GIVEN ITS APPROVAL TO THE SECURITIES, THE TERMS OF THE OFFERING, OR THE ACCURACY OR COMPLETENESS OF ANY OFFERING MATERIALS. THE SECURITIES ARE SUBJECT TO LEGAL RESTRICTIONS ON TRANSFER AND RESALE AND INVESTORS SHOULD NOT ASSUME THEY WILL BE ABLE TO RESELL THEIR SECURITIES. INVESTING IN SECURITIES INVOLVES RISK, AND INVESTORS SHOULD BE ABLE TO BEAR THE LOSS OF THEIR INVESTMENTS.  COHANZICK'S NEXUS FUND WILL NOT BE REGISTERED WITH THE SEC UNDER THE INVESTMENT COMPANY ACT OF 1940 AND, THEREFORE, WILL NOT BE SUBJECT TO THE PROTECTIONS OF THAT ACT.

Media contact: Alyson Gardner, [email protected]

SOURCE Cohanzick Management LLC

Related Links

http://www.cohanzick.com