Coast Asset Management Reorganizes; Focuses on Fixed Income Arbitrage Strategy

SANTA MONICA, Calif., March 23, 2012 /PRNewswire/ -- Coast Asset Management, LLC, an alternative investment firm that manages the assets of high net worth individuals and institutional investors, is pleased to announce that it is divesting itself of its fund of hedge funds business in order to focus the firm's efforts on its funds that employ its fixed income arbitrage investment strategy.

The firm has obtained the consent of its investors to sell its fund of hedge funds business to another asset management firm.  Coast anticipates that the transaction will close within the next few weeks.  The transaction terms will not be disclosed.

"We are pleased with the way our fixed income arbitrage strategy has performed during the challenging market conditions of the past several years and recent industry recognition we've received suggests that the industry has taken note," said Dave Smith, Coast's founder and CEO.  "Coast has always sought to manage risk and minimize volatility while achieving competitive returns,'' Smith said. "We look forward to implementing our investment ideas through our fixed income strategy and we believe that current and future market conditions will continue to present attractive investment opportunities for this strategy." 

The Coast fixed income strategy maintains a concentration in highly liquid U.S. Treasuries and seeks to outperform other fixed income strategies in a variety of market conditions.  The Coast fixed income strategy employs a pure relative value approach and market neutrality.  It is intended to be uncorrelated to major market factors and generate a return stream that is defensive in nature.  Coast maintains a positive outlook on the opportunity set in fixed income arbitrage due to volatility that Coast believes will result from economic uncertainty domestically and abroad. 

Established in December 1990 and operating since the beginning of 1991, Coast was formed by Smith, who continues to lead the firm as president and CEO.  Coast is majority owned by its management and, since inception, has consistently focused on achieving superior risk-adjusted returns while carefully managing downside volatility.

About Coast Asset Management

Operating since 1991, Santa Monica, Calif.-based Coast Asset Management is an independent alternative investment firm managing assets for institutional and high net worth investors worldwide.  Coast, majority owned by its management, is experienced in fixed income arbitrage and structured products.

SOURCE Coast Asset Management, LLC