Established in March 2000, Harbourmaster is one of Europe's leading bank loan investment managers measured by assets under management.
Harbourmaster is one of the largest managers of leveraged loans in Europe, having executed 15 closed end funds(of which 2 have been successfully redeemed by investors during 2006 and 2007) and 1 ABS fund (which was successfully redeemed by investors in 2005). Harbourmaster currently manages 13 closed end funds as well as one open ended fund and managed accounts.
In April 2008 Harbourmaster launched the Harbourmaster Investment Funds programme which is strucutured as an umbrella unit trust. Harbourmaster currently manage two sub fund accounts, the HCM Loan Investment Fund and the Harbourmaster Managed Fund Series 1 .The investment objectives for the sub funds launched are to maximise return and reduce volatility by the defensive selection of senior secured leverage loans with attractive risk/reward characteristics, focusing on loans with higher than average recovery potential using Harbourmaster's fundamental credit analysis and market presence.
Harbourmaster previously carried a CDO Asset Manager Rating of "CAM 1" by Fitch Ratings Limited. At Harbourmaster's request (following a suspension of the rating scale by Fitch) this rating was affirmed and withdrawn in 2009.
More information on the company and the team is obtained in the Fitch CAM Report on Harbourmaster Capital ManagementPlease find attached Harbourmaster's Pillar 3 disclosure policy statement.
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INVESTMENT PHILOSOPHY
Harbourmaster has maintained a focus on lower volatility assets
Focus on "Large" senior secured loan syndications (secured syndicated loans to companies with enterprise valuation of >€2 billion). Large syndicated loans attract the highest levels of due diligence from the marketplace and typically achieve superior credit ratings with the strongest likelihood of upgrade. As a senior secured lender, we consider that a focus on investment grade quality businesses (which are sub-investment grade only because of financial leverage rather than lack of critical mass, diversification, etc.) is most likely to lead to significant recoveries for senior secured lenders in a restructuring. Strong qualitative and quantitative analysis resulting in a high turndown / rejection rate.
A quantitative assessment of the borrower, its industry and its management
Quantitative analytics: All loans are 'valued' based on default probability and recovery expectation. Ongoing monitoring via monthly management accounts, quarterly compliance certificates, annual budgets and financial statements and regular site visits and conference calls with management.
Stable long term returns
Harbourmaster's overall performance aim is to achieve stable long term returns on each Fund it issues in line with initial expectations. We believe our performance to be amongst the best and most consistent of any European Loan Manager and we have experienced credit management throughout a full credit cycle.