Elliott Investment Management is one of the oldest fund managers under continuous management. The firm trades in securities across the capital structure. It employs an opportunistic trading approach and focuses on the creation of value, effective liquidity management, and managing operational and counterparty risk to generate consistent returns to its investors.
Elliott's primary focus is uncorrelated situations governed by process, complexity, negotiations, and factors unrelated to the forces impacting stocks and bonds generally.
Elliott seeks out positions in particular which are uncorrelated with other positions in the portfolio or with the risks and expected price movements of equities generally, or where value and protection against risk can be enhanced by the firm’s manual efforts.
This strategy is comprised of event arbitrage, related securities arbitrage, convertible arbitrage, volatility arbitrage and fixed-income arbitrage. Hedge/arbitrage are designed to take advantage of small anomalies between similar or related instruments on an opportunistic basis and to assist in achieving overall portfolio risk management goals.
Other debt includes first-lien bank debt, unsecured corporate debt which the firm believes will be serviced without restructuring, and structured credit products. These highly complex products often involve analyses of multiple layers of securitization and are not well understood by many investors.
Elliott may seek to take equity positions that result in gaining control of, or a substantial minority stake in, private companies or, on occasion, companies with a small public float.
There are real-estate-related securities positions in several of Elliott’s books, including distressed securities, non-distressed debt, event arbitrage, and equity-oriented positions. The firm’s knowledge of the securitized commercial mortgage-backed markets (CMBS) complements Elliott’s real-estate-related securities efforts and enhances Elliott’s ability to identify relative-value trades and hedging strategies.
Assets under management: $41.8 billion (as of December 31, 2020)