Profiles >> Brigade Capital Management LP

Brigade Capital Management LP

Last Updated: 1/27/2021

Brigade Capital Management LP is a Limited Partnership that started in 2006 and is primarily owned and controlled by Donald E Morgan.

Brigade Capital provides discretionary investment advisory or sub-advisory services to its clients which include: private investment funds for institutional and other sophisticated investors; separately managed accounts, including accounts established by registered investment companies ; joint venture arrangements with unaffiliated third parties; and other institutional or sophisticated investors.

Brigade Capital Management LP operates out of an office in New York, NY. Based on the Form ADV filed on 2020-09-28 00:00:00, the investment firm is comprised of 101 employees, only 41 of whom performs investment advisory functions.

Fact Sheet

      Name: Brigade Capital Management LP
      CRD No: 144078
      Filing Recorded: 2020-09-28 00:00:00
      Year of Origin: 2006
      Employees: 101
      Clients: 96
      AUM: 20,644,356,759
      Management Fee: .3 to 1.5 Percent
      Performance Fee: 15 to 25 Percent
      Client Type: Investment Companies, Pooled Investment Vehicles, Pension and Profit Sharing Plans, State or Municipal Government Entities
      Assets Traded: Exchange-Traded Equity Securities, Non Exchange-Traded Equity Securities, US Government Bonds, US State and Local Bonds, Sovereign Bonds, Investment Grade Corporate Bonds, Non-Investment Grade Coporate Bonds, Other


Investment Strategy

According to the brochure submitted to IAPD, Brigade Capitals investment strategy is as follows:

Brigade has seven primary investment strategies, they are:

Leveraged Capital Structures - Brigade manages Advisory Client portfolios that use a multi-strategy long/short investment strategy that focuses on investments throughout the capital structure of U.S. and international leveraged companies. The primary investment universe for these portfolios includes any issuer with debt or debt-like obligations rated below investment grade by one or more of the major rating agencies, or securities trading at yields comparable to the high yield market.

Credit Strategies - Brigade manages Advisory Client portfolios that focus primarily on investments in the credit markets and, more specifically, in secured bank loans. In addition to first lien senior secured loans, these portfolios may also invest in unsecured loans, second lien loans, mezzanine securities, debtor in possession loans, secured bonds and unsecured bonds.

Distressed Investing - Brigade manages Advisory Client portfolios that focus on distressed debt investing, capital structure arbitrage, leveraged and distressed equities, short positions in imminent bankruptcies, postreorganization equities, trade claims and merger arbitrage.

Arbitrage/Derivative Strategies - Brigade manages Advisory Client portfolios that utilize a multi-strategy approach which includes one or more of the following: shorter maturity bonds versus credit default swaps (“CDS”); longer maturity bonds versus CDS; matched maturity bonds versus CDS; and long-protection positions in single-name CDS.

Structured Credit Strategies - Brigade manages Advisory Client portfolios that focus on structured credit instruments, primarily long and short positions in the U.S. and European high yield and investment grade index tranches. These portfolios may also invest in U.S. and European CLO equity and debt, as well as CMBS, single-name CDS contracts, etc.

Energy Strategies - Brigade manages Advisory Client portfolios that focus on the long and short opportunity set within the energy sector. In addition to the bond, bank debt and equity prospects in the space, these portfolios may invest in rescue financing and second lien opportunities developing across the various subsectors.

Aviation Strategies - Brigade’s aviation strategies generally involve investments in aviation-linked securities and aircraft, including engines, parts and lease equity.

Methods of Analysis

In addition, Brigade Capitals methods of analysis include:

Brigade utilizes a variety of resources or services to form an investment idea or strategy. In general, Brigade researches and screens investment ideas from quantitative and qualitative points of view. Research typically includes reviewing the prospectus of a company as well as financial statements and regulatory filings. Brigade often seeks to speak with company management, analysts and seasoned sales professionals at major broker-dealers, third party industry experts, and others industry participants. Brigade also generates ideas by reviewing industry reports and having discussions with third party industry experts. In addition, Brigade develops and closely reviews internal valuations for potential investment targets, including asset coverage, free cash flow, and overall likelihood and severity of default.

Top 10 Holdings from Form 13F

Reporting Period: 09/30/2020

Issuer Share Value(1000s) Put/Call
SPDR S&P 500 ETF TR 1,394,000 466,837 Put
ISHARES TR 3,655,000 306,655 Call
ISHARES TR 1,895,000 283,852 Put
SPDR S&P 500 ETF TR 720,000 241,121 Put
ISHARES TR 2,345,000 196,746 Call
ISHARES TR 1,300,000 194,727 Put
ISHARES TR 1,500,000 125,850 Put
LIBERTY MEDIA CORP DEL 128,261,000 93,631
SPDR GOLD TR 360,000 63,763 Call
ISHARES SILVER TR 2,100,000 45,444 Call

Historical 13F Filings

EdgeGiant has compiled all 13F filings since Q2 2013 for your convenience. You can view historical portfolio position forBrigade Capital Management LPin 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.

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Historical Portfolio Holdings for Brigade Capital Management LP