Specializing in Convex Return Distributions
Through Fundamental, Quantitative & Technical Disciplines
Applied Across the Capital Structure
Panthera Capital is a completely independent registered investment adviser solely focused on achieving optimal risk-adjusted returns. We manage three distinct investment strategies designed to meet the objectives of a broad set of clients. Our multi-strategy offering and separately managed account structure is tailored to enable clients to allocate assets within their risk tolerance without settling for passive/index-level return expectations and while retaining high liquidity. We target investments offering attractive return potential relative to risk by leveraging asymmetric trade structures. As a completely fee-only independent registered investment adviser (sans allegiances to any financial partners or products), Panthera is free from the numerous conflicts of interest endemic in larger organizations and instead able to pursue our client’s best interests. And perhaps most importantly, our interests are entirely aligned – Panthera Capital invests right alongside our clients.
Strategy Background
Panthera’s objective is to outperform the broader equity markets with less risk. We aim to combine trade and security structures designed to minimize downside risk with advanced security selection skills to capture large upside. The concept of an asymmetric return profile (or generating a disproportionate upside/downside ratio) is known as convexity. When combined with our broad skill set (which spans credit, equity, and derivatives), we deploy these structures across the capital structure, flowing to securities offering relative value. In so doing, we aim to avoid under-performance that may plague managers confined to narrow mandates (which precludes them from flowing to relative value). Our ability to invest across the capital structure provides a heightened readiness level, positioning us to pounce when relative value emerges (as we may already be involved in other parts of the capital structure). We generally focus on levered equities positioned for above-average growth (concentrated in TMT and consumer discretionary sectors with small/mid-cap valuations) where execution risk is favorable relative to valuation. We then target broader diversification through top down sector allocations.
Strategies
Equity Long/Short
Convertibles
High Yield
Principal Background
Panthera is focused on delivering favorable risk/return profiles through trade and security structures designed to minimize downside while capturing relatively large upside potential. Its founder, Lauren Landfield, CFA (a black belt in kung fu and a brown belt in jujitsu), applies “black belt techniques” to investments. He has developed these strategies during over 20 years in investments (including including over 13 years in convertibles). After starting in investment banking (as an equity research analyst at JP Morgan covering TMT), Lauren ran corporate finance at a technology company and completed numerous acquisitions and financings, including two convertible bonds ($700mm). After leveraging the benefits of convertibles to issuers, he spent seven years at a multi-billion dollar convertibles investment management firm. There, he focused on balanced convert strategies aimed at generating convex return profiles.
Fundamental Tenants
“Put Your Money Where Your Mouth Is“: In contrast to many others in the brokerage and advisory industry, Panthera Capital invests right alongside our clients. We do not make publicly-held securities investments outside of what we offer to our clients. By being invested alongside our clients, we are mutually aligned, which we believe reduces chances of conflicts of interest. In sum, if we are comfortable investing a client’s capital, we better be comfortable making the same investment ourselves and in considerable size.
“Be Water My Friend”: By adapting to market conditions and deploying a multitude of strategies rather than maintaining a singular rigid strategy, Panthera believes it provides clients with an “all-seasons” investment platform. More importantly, Panthera believes it will hit on more upside movers and avoid more downside movers as it picks the right “tool” for the trade rather than forcing trades based on a certain strategy mandate.