DDJ Sees Continuing Interest in High Yield and Bank Loan Strategies; Flexibility Key in Fluid Interest Rate Environment

Jul 18, 2013, 11:22 ET from DDJ Capital Management, LLC

WALTHAM, Mass., July 18, 2013 /PRNewswire/ -- At mid-year 2013, DDJ Capital Management, LLC, an institutional investment manager specializing in high yield, senior loan, and special situations strategies for investors worldwide, sees clients increasingly embracing a broader fixed income strategy that encompasses both traditional high yield bonds and floating rate bank loans as they seek yield amid a rising interest rate environment.

DDJ, a Waltham, Massachusetts-based manager of high yield and senior loan instruments since 1996, managed approximately $6.1 billion in total as of June 30, 2013, including $1.6 billion in bank loans across all of its investment strategies and approximately $114 million in a dedicated senior loan strategy as of such date. Approximately 50% of client assets are managed on behalf of U.S.-based institutional investors, with the remaining 50% managed in accounts for investors based in Canada, Europe, and the Middle East.

"We are finding heightened interest from U.S. and international investors in flexible mandates that allow us to take advantage of market dynamics, in addition to continued demand for separate high yield and bank loan strategies as investors seek income in this rate-challenged environment," said David Breazzano, DDJ's president and chief investment officer.

DDJ's first half 2013 highlights include:

  • $650 million in a portfolio pursuing DDJ's core high yield strategy awarded by a prominent Nordic-based financial institution;
  • $235 million for DDJ's opportunistic high yield strategy from a public pension fund based in Scandinavia;
  • A mandate of $70 million pursuing the DDJ strategic income strategy from a private foundation based in California;
  • Anticipated $40 million mandate to DDJ's opportunistic high yield strategy from a California-based public pension system;
  • A senior loan mandate of $50 million from the pension plan of a Canadian subsidiary of a large U.S.-based retailer;
  • Firm assets under management exceed $6 billion for the first time since the firm's inception; and
  • Expansion of DDJ's equity ownership pool in February to an additional 13 senior employees.

Also during the first half of 2013, DDJ Capital established a new Investment Review Committee, promoting three research analysts to the position of managing director as part of the effort. The Investment Review Committee, which provides a forum for DDJ to systematically review each of the existing and potential credits in its portfolios, comprises David Breazzano, DDJ president and chief investment officer; Tony Ranaldi, executive vice president and portfolio manager; Joseph Lind, portfolio manager; Roman Rjanikov, managing director; Benjamin Santonelli, managing director; John Sherman, managing director; and Scott McAdam, director.

About DDJ Capital Management, LLC

DDJ Capital Management is a high yield, senior loan and special situations investment manager based in Waltham, Massachusetts. Established in 1996, DDJ currently manages over $6.1 billion on behalf of corporate and public retirement funds, insurance companies, endowments, foundations and family offices worldwide. DDJ's investment team consists of investment professionals highly specialized in the areas of credit research, legal analysis, bankruptcy law, portfolio management, trading and business operational improvements. For more information, please visit www.ddjcap.com.

SOURCE DDJ Capital Management, LLC