Our Approach
Holistic Investing. Integrated Advantage.
A connected investment framework across the firm — built to collaborate across the platform and deliver persistent profitability for our partners.
Risk Management and Portfolio Construction
Risk management and portfolio construction are central to how we invest. Three proprietary frameworks anchor risk at the investment level, surface concentration across the firm, and provide continuous portfolio-level visibility.
Deal Code
At the core of our risk-focused investment process is the Deal Code System. Each Deal Code captures a single investment thesis, incorporating core positions and related hedges where appropriate. As the building blocks of the portfolio, Deal Codes anchor risk at the investment level while promoting diversification and disciplined control of portfolio exposures.
Gerber Statistic
Designed by our founder and CEO, Sander Gerber, and implemented in RMon, the Gerber Statistic is a patented, rank-ordered, thresholded measure that replaces historical correlation/covariance with a focus on meaningful co-movement. By ignoring low-information moves, it adapts to events and regime shifts, surfaces concentration risk between Deal Codes, and informs hedging, de-risking, and capital coordination.
Hudson Bay co-authored research with Nobel laureate Dr. Harry Markowitz showing how this approach extends Modern Portfolio Theory in a multi-asset, multi-strategy setting. (U.S. Patent No. 8,577,775 and additional licensed patents pending.) Read more.
RMon
Risk is monitored continuously at the portfolio level through RMon, our proprietary risk management platform. The system provides real-time visibility into exposures, diversification, and concentration across Deal Codes and strategies.
Our Platform
Hudson Bay’s multi-strategy platform integrates capabilities across public and private markets, asset classes, and strategies.
Multi-Strategy Platform
Since 2006, we have invested across five complementary strategies — credit, convertibles, event / merger, equities, and volatility.
Each operates within a holistic investment framework that integrates expertise across the platform. All investments are managed within a unified risk framework.
Credit
We target mispriced risk across corporate, sovereign, structured, and distressed credit. We focus on asymmetric opportunities driven by dislocations, restructurings, liability management transactions, and liquidity gaps. We draw on our deep credit experience and flexible capital to structure capital solutions that combine secured downside protection with equity-linked optionality.
Convertibles
We focus on convertible securities and select liability management opportunities. Our approach combines a hedged relative value portfolio with a structured capital solutions platform that provides bespoke financing. Deep issuer relationships, disciplined structuring, and cross-team collaboration strengthen underwriting and execution.
Event / Merger
We invest in securities and spreads driven by corporate events, regulatory developments, and other idiosyncratic catalysts. We invest across the full lifecycle of transactions and special situations, allocating capital where complexity, uncertainty, or structural constraints create opportunities.
Equities
We combine deep sector expertise with a disciplined, market-neutral risk framework. We target relative-value opportunities, catalyst-driven events, and thematic shifts.
We seek to capture dispersion driven by rotations, liquidity imbalances, passive flows, and shifts in market sentiment. Cross-team collaboration strengthens underwriting and enhances our ability to identify both first- and second-order effects.
Volatility
We capture optionality across global equity derivatives, correlation, dispersion, dividends, and macro-driven convexity. We trade single-name and index volatility, correlation, volatility-of-volatility, and structured equity-linked financings. Cross-asset insights shape trade construction, allowing us to capture.
Solutions
Areas of capability developed within the multi-strategy platform. These purpose-built client solutions align capital with the underlying investment strategy while preserving collaboration across our broader investment platform.
Special Opportunities
We pursue concentrated investments across asset classes and capital structures where we see highly convex return potential. These strategies apply the same disciplined, risk-first framework that underpins our multi-strategy platform. The result is a focused portfolio designed to capture asymmetric returns while maintaining rigorous risk management.
Real Estate
We partner with sponsors and management teams to originate solutions for the refinancing and recapitalization of assets we determine are high-quality across markets and property types. As an established capital solutions provider, we are a trusted partner to leading borrowers seeking flexible structures and certainty of execution.
Capital Solutions
We draw on longstanding experience in lending and complex capital structures. We focus on situations where complexity and idiosyncratic circumstances create opportunities for creative structuring and disciplined underwriting, delivering tailored capital solutions across market environments.
Portfolio Solutions
We develop bespoke investment structures in partnership with our investors. Drawing on the firm's broad capabilities, we design solutions aligned with investors' strategic objectives.
