Special Situations Research
Unique, high-conviction investment ideas driven by corporate actions, idiosyncratic events, and stressed or distressed situations.
Why Choose Canyon River Advisors
We focus exclusively on value-added thought and analysis, only publishing concise research with a clear thesis and supporting arguments.
Expert Analysis
In-depth research on corporate actions, idiosyncratic events, and stressed/distressed situations.
Unlimited Analyst Access
As an invaluable extension of your research process and investment team, clients are encouraged to call, email or ping us on Bloomberg.
Unconstrainted Security Selection
Our holistic view of the capital structure allows us to identify the best debt or equity instruments to express our view.
An Experienced Partner
The team is led by a former buy-side portfolio manager with 15 years of experience investing in hundreds of special situations, in both credit and equity.
US & European Coverage
We cover situations in both the U.S. and Europe, so clients can choose one or both regions to suit their investment focus.
Aligned With Your Process
A gulf exists between a sell-side recommendation and a portfolio manager's investment decision. We conduct research on the margins to create an edge, size the risks, and frame the downside.
Research Focus
Corporate Actions
Comprehensive coverage of companies conducting spin-offs, split-offs, Reverse Morris Trusts, exchange offers, and tender offers; and ongoing analysis of strategic alternatives processes, shifts in capital allocation priorities and other situations that could be precursors to a transaction.
HISTORICAL EXAMPLES
- Caesars Entertainment (CZR)
- Comcast (CMCSA) / NBCUniversal
- DCC Energy PLC (DCC LN)
- FedEx (FDX) / FedEx Freight (FDXF)
- Hexagon AB (HEXAB SS) / Octave Intelligence (OCTV)
- Repsol S.A. (REP SM)
- Resideo Technologies (REZI) / ADI Global (ADIG)
- S&P Global (SPGI) / Mobility Global (MBGL)
Idiosyncratic Events
Analysis of situations stemming from exogenous and endogenous shocks such as delistings, production crises, failed sales processes, federal probes, internal control failures, adverse trade policies, leadership crises, and accounting fraud.
REPRESENTATIVE SITUATIONS
- First Quantum Minerals (FM.TO) - Panama mine closure
- Organon & Co. (OGN) - Improper sales practices
- Super Micro Computer (SMCI) - Export control scrutiny
Stressed, Distressed, and Post-Reorganizations
Identification of investment opportunities in restructurings, liability management exercises and post-reorganization equities. Deeply depressed and out-of-favor “turnaround” stories may also be examined.
HISTORICAL EXAMPLES
- Garrett Motion (GTX)
- Wolfspeed (WOLF)
Sample Publications
EchoStar Corp (Nasdaq: ECHO)
Not a SPCX mispriced arb. Not a cheap proxy for SPCX. But an interesting pairs trade nonetheless. Neutralize the SPCX value within ECHO to play the other multiple shots on goal for meaningful upside.
Download PDFBausch Health (NYSE: BHC) / Bausch + Lomb (NYSE: BLCO)
Meaningfully de-risked and simplified situation as well as aligned incentives makes previously un-investible longer-dated bonds now attractive. Viable path forward with meaningful catalyst in the form of a BLCO share monetization. Worth a look if you've previously passed because of...
Download PDFParamount Skydance (Nasdaq: PSKY)
PSKY to issue 10-year warrants to shareholders at close of WBD acquisition that we estimate could be worth $3.00 - $7.00+ per share vs. the current $10.86 share price. We do not think these warrants are priced into the stock....
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