Eos Credit Opportunities invests on an opportunistic basis in a wide variety of credit-oriented assets across several geographic markets. ECO's investments are primarily comprised of bonds and bank debt, both performing and non-performing or defaulted, as well as trade claims, preferred securities and related equities in various reorganization situations. The fund invests globally with a focus on North America, the U.K. and other Western European countries, and a small basket for Latin American and Asian securities.
ECO's investment strategy is to apply a corporate-finance oriented approach to credit markets investment analysis and to leverage its members' extensive investment experience as successful private equity business owners, board members and creditors across numerous business cycles. ECO seeks to utilize intensive, private-equity style due diligence to identify perceived investment opportunities in four general categories: (i) credits with improving cash flow characteristics not recognized by the markets; (ii) companies offering attractive franchise or asset values at meaningful discounts to private market or orderly liquidation values; (iii) companies in out-of-favor industries or impacted by "overblown" events where we perceive a market overreaction to certain developments; and (iv) on a limited basis, activist opportunities in which we seek to exercise significant influence over the bankruptcy process for a particular company. ECO will generally have a long bias though may implement short positions and use credit default swaps opportunistically.