BlueMountain Capital Management LLC
Last Updated: 12/3/2020
BlueMountain Capital Management LLC is a Limited Liability Company that started in 2003 and is primarily owned and controlled by Andrew Feldstein.
BlueMountain is a diversified alternative asset manager that uses an interdisciplinary approach to identify opportunities stemming from artificial investor segmentation, behavioral biases and idiosyncratic events.
BlueMountain Capital Management LLC operates out of an office in New York, NY. Based on the Form ADV filed on 2020-03-26 00:00:00, the investment firm is comprised of 120 employees, only 46 of whom performs investment advisory functions.
- Name: BlueMountain Capital Management LLC
- CRD No: 128132
- Filing Recorded: 2020-03-26 00:00:00
- Year of Origin: 2003
- Employees: 120
- Clients: 54
- AUM: 14,806,543,000
- Management Fee: 1 to 2 Percent
- Performance Fee: 20 to 30 Percent
- Client Type: Pooled Investment Vehicles
- Assets Traded: Unspecified
According to the brochure submitted to IAPD, BlueMountains investment strategy is as follows:
BlueMountain’s investment strategies and investment themes can be broadly grouped into the following categories:
Credit: fundamentally and technically based relative value investments (long and short) (i) between or among different issuers, groups of issuers, or sectors, (ii) in instruments with differing levels of seniority within the capital structure of one issuer, (iii) in credit instruments along the term structure curve of single name credits or indices (curve flatteners and steepeners), (iv) between indices and in indices versus their constituents, and (v) between cash bonds and credit default swaps of the same issuer. Investments are expressed in debt, convertible debt, option and equity positions, as well as in derivative form.
Distressed and Special Situations: long and short positions in equity and debt instruments of stressed and distressed issuers, issuers undergoing extraordinary transactions and issuers in industries experiencing transitional changes.
CLOs: positions across the capital structure of collateralized loan obligations advised by BlueMountain, BMCLO and BlueMountain Fuji as well as other advisors.
ABS: long and short positions in individual asset backed securities, including, but not limited to, specialty finance companies, student loans, credit card receivables and auto financings, as well as debt and equity positions in consumer and commercial finance companies.
Synthetic Structured Credit: long and short positions in portfolios of credits pooled together and then tranched into classes with varying priorities and risk/return profiles. The credits underlying these transactions are derivative or cash instruments and the investments themselves are in derivative or cash form.
Mortgages: long and short positions in non-agency mortgage bonds, mortgage backed securities, mortgage REITs, debt and equity positions in mortgage originators, whole loans, home equity conversion mortgages and other mortgage related assets.
Commercial Real Estate: debt and equity positions in real estate and real estate related assets, including commercial real estate, project finance transactions and tax-lien investments.
Volatility and Cross Markets: long and short positions of volatility and other derivative assets, both within the same and across varying markets.
Municipal Bonds: positions in taxable, tax-exempt, investment grade and high-yield municipal bonds.
Insurance-Linked Securities: investments in catastrophe bonds and other instruments with performance linked to realization of insured and other triggering events.
Appraisal Claims: utilize corporate law to seek judicial review of M&A transactions that undervalue the target company.
Private Capital: privately negotiated investments across debt, equity and structured/hybrid instruments in various industries including healthcare, specialty finance and infrastructure.
In evaluating securities, the main sources of information used by BlueMountain include, but are not limited to: quantitative data provided by third-party vendors; financial newspapers and magazines; research materials prepared by third parties; corporate rating services; annual reports, prospectuses and filings with the SEC; and company press releases. However, BlueMountain relies on its traders, portfolio managers, research analysts and quantitative strategists for generating and vetting trade ideas. BlueMountain typically generates internally the research that it ultimately relies upon to make investment decisions.
Methods of Analysis
In addition, BlueMountains methods of analysis include:
BlueMountain’s investment process generally consists of identifying trading and investment strategies within and across asset classes and markets by combining one or more of the following methods of analysis:
1. Fundamental research by BlueMountain’s research team;
2. Quantitative analysis of price relationships within market segments and across different markets by the quantitative strategy team;
3. An understanding of the technical dynamics in the various credit, fixed income, equity and volatility markets (by the trading desk and portfolio managers); and
4. Market insights, macroeconomic views, judgment, and discretion of the portfolio managers.
BlueMountain’s analysts undertake in-depth financial analysis of individual names and monitor market developments across the sector. They combine a fundamental, cash flow approach with an understanding of the company’s capital structure and specific securities to facilitate absolute and relative value judgments on individual names. Analysts make recommendations on outright long or short positions in particular positions, capital structure trades and opportunities that arise between names. Research specialists provide expertise in particular areas of fundamental research to complement sector and name coverage and use quantitative models that generate fundamental, technical and flow-based signals.
Top 10 Holdings from Form 13F
Reporting Period: 09/30/2020
Historical 13F Filings
EdgeGiant has compiled all 13F filings since Q2 2013 for your convenience. You can view historical portfolio position forBlueMountain Capital Management LLCin our 13F section HERE.
To get the comprehensive list of holdings that fall under 13F regulatory guidelines, check out our write up on how to access and use 13Fs in your personal investment decisions.