Radcliffe believes that forecasting macro conditions is notoriously unreliable, bubbles are inevitable, the large majority of the investment world is efficiently priced, and structural market inefficiencies can persist in niche strategies.

Accordingly, Radcliffe has focused on limited capacity strategies where deep due diligence can capture the elusive combination of attractive absolute returns and capital preservation even through market disruptions.

Radcliffe's investment objectives have always been to:

• Generate attractive returns driven by alpha combined with minimal volatility and capital preservation.

• Create long-term value for ourselves and our clients by limiting AUM based on the size of each inefficiently priced market.

• Limit investment risk through deep analysis and defensive portfolio management.

• Control business risk through extensive compliance and operational controls.

Radcliffe's investment approach is to find defensive credit strategies we want to invest in ourselves. For us, that requires:

• Identifying mispriced securities that exist as a result of structural market inefficiencies by:

  • Relying on our own fundamental analysis to fully understand the nuances of each investment.

  • Seeking a diversity of perspectives.

  • Actively sharing ideas.

  • Questioning the consensus view.

  • Considering realistic, even if unlikely scenarios.

• Constructing attractive and defensive portfolios by:

  • Focusing on target returns driven by alpha.

  • Seeking principal protection even under stressed conditions.

  • Investing only in our best ideas even at the expense of limiting capacity.

  • Continuously optimizing each portfolio by opportunistically re-balancing.