Dark Horse Exists Because There is a Better Way to Invest

  • After more than a decade working at and with some of the most recognized distressed firms, it became clear their approach is similar: static, reactionary, and overly reliant on “the bankruptcy process” for results.
  • Over a 10-year business cycle, a typical distressed fund spends 5 years waiting to react; Dark Horse proactively compounds value throughout the entire business cycle.

Well-Defined Research Process

  • Proactively identify structural change to highlight investment themes and opportunities.
  • Focus on capitalizing on misunderstood companies subject to such change.
  • Intrinsic value discovery based on levered free cash flow forms the foundation of any investment.
  • The goal is to discover cash on sale. 

Flexibility, Size, and Speed

  • Utilize experience with large, overly complex restructurings and focus on small and mid-cap opportunities that are not followed by larger funds.
  • Smaller opportunities are typically more plentiful and less trafficked,  providing greater pricing inefficiencies for the same amount of risk.
  • No bureaucracy - fully researched investment opportunities can be executed quickly.

Repeatable Success

  • Post-mortem evaluation to determine whether success was caused by skill or luck.
  • Why did we win?  Why did we lose?  Were we right to pass?
  • Understanding the actual drivers of a win or a loss enable the ability to create and continuously optimize a successful investment process.

Win with Integrity and Class

  • Approach every day as a competition; the market is always a willing participant.
  • Preparation provides clarity and an edge in an otherwise opaque situation.
  • A Dark Horse win is a loss for the counterparty; show class and humility - paths will cross again.