Philosophy
and Approach

Wexford's Three Pillars of Success

As responsible custodians of capital, Wexford believes that investing in good companies at the right valuations is the best hedge, and will ultimately generate positive results

Buy high quality assets at dislocated prices

Throughout its 25+ year existence, Wexford has always strived for new and better ways to generate alpha, by constantly adapting its strategies and opportunistically investing across asset classes

constant evolution

Going above and beyond the mediocrity of consensus, the Wexford team always engages in debate and collaborates on ideas to establish unique perspectives that drive outperformance

achieve differentiated results by seeking differentiated views

Key Areas of Investment Expertise

Equities and Commodities

  • Macro driven regional and sector thematic investments
  • Fundamentally driven special situations
  • Post reorganization equities
  • Private equity
  • Futures / options / physicals

Credit

  • Bankruptcies and reorganizations
  • Performing bonds
  • Performing loans

FX/Rates

  • Currencies
  • Government debt
  • Interest rates

Mortgages

  • Asset backed securities
  • Whole loan mortgages

Real Estate

  • Land entitlement and ground up residential
  • Senior housing
  • Structured transactions
  • Covered land plays

Private Equity

  • Energy / Natural Resources
  • Transportation
  • Agriculture / Ranch / Timber
  • Technology / Telecom
  • Bankruptcy / Distressed

Equities and Commodities

Credit

FX/Rates

Mortgages

Real Estate

Private Equity

  • Macro driven regional and sector thematic investments
  • Fundamentally driven special situations
  • Post reorganization equities
  • Private equity
  • Futures / options / physicals
  • Bankruptcies and reorganizations
  • Performing bonds
  • Performing loans
  • Currencies
  • Government debt
  • Interest rates
  • Asset backed securities
  • Whole loan mortgages
  • Land entitlement and ground up residential
  • Senior housing
  • Structured transactions
  • Covered land plays
  • Energy / Natural Resources
  • Transportation
  • Agriculture / Ranch / Timber
  • Technology / Telecom
  • Bankruptcy / Distressed

Investment Process

1.
Assess Macro Environment

  • Objectively mine data by assessing all reputable sources, while weeding out market noise / false interpretations
  • Utilize internal expertise, external consultants, and inputs from Wexford operated private equity businesses
  • Establish outlook on global economic cycles, commodities, supply / demand, global rates and currencies

2.
Develop Themes

  • Isolate Wexford’s outlier views versus consensus / market
  • Determine sectors, regions and or asset classes where macro projections can produce profitable opportunities

3.
Filter
Investments

  • Conduct rigorous fundamental analysis to refine macro themes
  • Identify securities with advantageous risk / reward

4.
Implementation

  • Determine timing and sizing by: conviction, market dynamics
    – e.g., liquidity and sentiment – and availability of other opportunities
  • Build flexibility and diversification into portfolio to ensure prompt reaction and ability to exploit potential market change

Investment Process

1.
Assess Macro Environment

2.
Develop
Themes

3.
Filter
Investments

4.
Implementation

  • Objectively mine data by assessing all reputable sources, while weeding out market noise / false interpretations
  • Utilize internal expertise, external consultants, and inputs from Wexford operated private equity businesses
  • Establish outlook on global economic cycles, commodities, supply / demand, global rates and currencies
  • Isolate Wexford’s outlier views versus consensus / market
  • Determine sectors, regions and/or asset classes where macro projections can produce profitable opportunities
  • Conduct rigorous fundamental analysis to refine macro themes
  • Identify securities with advantageous risk / reward
  • Determine timing and sizing by: conviction, market dynamics
    – e.g., liquidity and sentiment – and availability of other opportunities
  • Build flexibility and diversification into portfolio to ensure prompt reaction and ability to exploit potential market change

Public Market Synergies with Private Equity

Wexford has been investing in private equity opportunities since 1994 and private market activities help inform our public views

Operating Expertise Boosts Critical Lens

Hands-on involvement in operating businesses enhances the team’s ability to critically evaluate plans and projections heard on Wall Street

Access to Essential Macro Data Points

As owners of businesses, our team maintains real-time access to critical data, such as commodity pricing and order volume, which are not easily accessible to typical trading desks

Differentiated Industry Insights

Running multiple businesses provides a deeper understanding of cost structures, profit potential, labor issues, logistics, customers and suppliers – unattainable by run-of-the-mill funds

Expands Idea Generation

Ground level views from managing businesses helps team to better identify new trends, opportunities, and risks

historical sectors

Agriculture / Ranch /
Timber

Stampede Farms LLC

Wexford TI Holdings

Redwolf Farms LLC

Bankruptcy /
Distressed

Rhino Energy Holdings LLC

Sunterra

EPL

Energy /
Natural Resources

Diamondback Energy
Canadian Grizzly Holdings

Windsor Energy

Real Estate

1010 Brickell

All Seasons of Naples

Fasken Center

Technology / Telecom

Digital Power

Global Crossing

USHFCC (fka Virsenet)

Transportation

Frontier Airlines

Azul Linhas Aéreas Brasileiras

Republic Airlines