Will Hampson Dalton Investments: Navigating The Financial Landscape

Dalton Investments is a global investment management firm with expertise in Asia, emerging markets, and global equities. The company was founded in 1999 by Steve Persky, James Rosenwald, and Gifford Combs, who shared a belief in the potential of the Asian market. With headquarters in Los Angeles and offices in several major cities worldwide, Dalton Investments manages billions of dollars in actively managed strategies for a range of clients. The company's unique structure and focus on capital preservation, transparency, and integrity have contributed to its stability and success in turbulent market environments.

Dalton's investment activities

Dalton Investments is a value-focused investment management firm with expertise in Asia, emerging markets, and global equities. The company's investment activities are categorised into distressed debt, Asian equities, and global hedged equities.

Dalton's distressed debt investments are managed by Steve Persky, who has extensive experience in the field. Persky's strategy focuses on recognising market outlooks on a multi-year basis and taking a long-term view on distressed investing. He emphasises capital preservation and seeks to invest in companies with strong fundamentals, offering strong upside potential with a substantial margin of safety. Persky's approach has delivered strong returns, such as a 12.6% annualised return over seven years for investors in a low-volatility distressed credit strategy.

Asian equities are managed by Jamie Rosenwald, who has significant investment experience in the region. Rosenwald identifies opportunities in post-crisis turmoil and medium-term investment strategies. He also has expertise in managing Japanese long-only portfolios and Asian distressed debt.

Global hedged equities are overseen by Gifford Combs, who shares the founders' belief in the potential of the Asian market. Combs' strategy focuses on global opportunities, including dollar-denominated bonds for Asian companies, distressed securities, and hedging at the position or portfolio level.

Dalton's unique structure and entrepreneurial spirit allow it to be nimble and insightful in its investment approach. The company prioritises capital preservation, transparency, and integrity in its values. With a diverse team of talented and experienced professionals, Dalton manages $4.4 billion (as of March 31, 2024) in actively managed long-only and long/short strategies for pensions, endowments, foundations, financial institutions, and family offices.

Dalton's founding partners

Dalton Investments was founded by James B Rosenwald III, who is also the Chief Investment Officer of the firm. He is joined by co-founder Owens Huang, who is also a co-portfolio manager at Dalton Investments.

There is limited information on the founding partners of Dalton Investments. However, there are several other notable employees at the firm. These include:

• Belita Ong, Chairman at Dalton Investments
• Shiro Hayashi, Director of Research
• Masumi Nishida, Senior Research Analyst
• James (Sung Yoon) Lim, Korean specialist

Dalton's investment team

Dalton Investments is a global investment management firm with a unique structure that allows it to be both nimble and insightful. The company has a strong focus on value investing and is headquartered in Los Angeles with offices in several major cities worldwide, including Las Vegas, New York, Tokyo, Hong Kong, Sydney, and Mumbai. As of March 31, 2024, Dalton manages $4.4 billion in actively managed long-only and long/short strategies.

The success of Dalton's investment approach depends on its talented, disciplined, and experienced staff who share a passion for value investing. The company prioritizes capital preservation and values transparency and integrity. Dalton's investment team consists of individuals with diverse backgrounds, cultures, and languages, fostering a rich and diverse organization.

The investment team at Dalton Investments is led by experienced professionals such as James B. Rosenwald III, CFA, who serves as Founding Partner and Chief Investment Officer. Other key members include Siva Thiravidamony, CFA, Partner and Director of Research, and Gifford Combs, who manages global hedged equities. The team also includes senior research analysts, portfolio managers, and a chief sustainability officer.

Dalton's investment activities can be categorized into three main areas: distressed debt managed by Steve Persky, Asian equities managed by Jamie Rosenwald, and global hedged equities managed by Gifford Combs. The company's investment strategies focus on strong fundamentals, offering a substantial margin of safety and strong upside potential.

In conclusion, Dalton Investments' success is driven by its talented investment team, diverse investment strategies, and a strong focus on value creation. The company's global presence and expertise in Asia, Emerging Markets, and global equities position it well to capitalize on investment opportunities worldwide.

Dalton's entrepreneurial approach

Dalton Investments is a global investment management firm with a unique structure that enables it to be both agile and insightful. The company has a strong presence in Asia, Emerging Markets, and global equities, with expertise in managing long-only and long/short strategies for pensions, endowments, and financial institutions.

A key aspect of Dalton's entrepreneurial strategy is its recognition of the importance of entrepreneurial spirit and family-owned businesses in Asia. Many Asian companies are still in the hands of their founders or family-operated, and Dalton sees this as an opportunity to collaborate closely with these entrepreneurs. By understanding their personalities, business approaches, and local dynamics, Dalton can unlock value and enable their growth. This approach requires a deep commitment to building local knowledge and relationships, which is a key strength that Dalton's analysts bring to the table.

Dalton's entrepreneurial culture is also reflected in its diverse and talented staff. The company values diversity, promoting talent regardless of race or gender, and believes that a range of perspectives strengthens their organisation. This commitment to diversity is evident in their leadership, with 40% of the Management Committee identifying as women as of June 2023.

Overall, Dalton Investments' entrepreneurial approach combines a disciplined, value-focused strategy with a deep understanding of the Asian market and a commitment to fostering diverse talent. By partnering with founders and family-operated businesses, Dalton aims to unlock the potential of entrepreneurial ventures across the globe.

Dalton's distressed debt strategy

Dalton Investments is a value-focused investment management firm with expertise in Asia, Emerging Markets, and global equities. The company's unique structure allows it to be both nimble and insightful, and it has managed to maintain stability through turbulent market environments. Capital preservation is its highest priority, and transparency and integrity are its core values.

Daltons' distressed debt strategy aligns with its overall investment approach, focusing on companies with strong fundamentals that offer strong upside potential with a substantial margin of safety. Here is an overview of how this strategy might work:

Identifying Suitable Companies

Daltons looks for companies with a successful business model and an in-demand product or service. These companies may be experiencing temporary financial distress due to a high debt load, difficulty in refinancing, or challenges in meeting debt covenant restrictions.

Acquiring Debt Securities

Once suitable companies are identified, the strategy involves acquiring their debt securities at a substantial discount. This acquisition can happen through purchasing existing debt from lenders or providing new debt to the company before it defaults on its existing obligations.

Supporting the Debtors

As part of the distressed debt strategy, Daltons works with the debtors to enhance the value of their assets and support them in receiving payments. This may involve complex legal and financial strategies, often without the cooperation of the company's management.

Influencing Restructuring or Bankruptcy

Daltons aims to gain influence or control by holding a significant portion of the company's debt. This position allows them to have a say in the company's restructuring process and potentially emerge as an equity owner. If the company cannot be restructured, Daltons, as a debt holder, will still be among the first to be repaid during bankruptcy or liquidation.

Maximizing Investor Returns

Daltons employs both passive and active strategies to maximize investor returns. Passive strategies involve holding the debt until the company's financial situation improves, and the price of the debt securities climbs, or a reorganization or bankruptcy occurs. Active strategies, on the other hand, involve acquiring control or pressuring management into a reorganization or bankruptcy that enhances investor value.

Managing Risk

Distressed debt investing carries high risks, including the potential for competition from other distressed debt investors and the unpredictability of bankruptcy proceedings. Due diligence and a thorough understanding of local bankruptcy laws are crucial to mitigating these risks.

In conclusion, Daltons' distressed debt strategy involves a careful balance of identifying suitable companies, acquiring their debt at a discount, supporting debtors, influencing restructuring or bankruptcy, maximizing investor returns, and effectively managing the inherent risks of this investment approach.

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