Marathon Asset Management is a privately held investment management company founded in 1998 by Bruce Richards and Louis Hanover. The company specializes in distressed and special-situation investing in credit and fixed-income markets across the globe. It offers investment strategies focused on corporate credit, structured credit securities and emerging market credit. The company also offers a separate account product delivering customized credit strategies matched to client needs. Marathon primarily serves institutional investors, including corporations, pension plans and financial intermediaries. The company is headquartered in New York City and maintains offices in London and Singapore. As of Dec. 31, 2015, Marathon has approximately $13 billion in assets under management (AUM).
Marathon's approach to opportunistic credit and fixed-income investing is founded on bottom-up fundamental and technical analysis driven by a rigorous in-house research program, disciplined risk management and special expertise across the capital structure. Marathon investment teams are made up of highly experienced credit analysts, portfolio managers, debt restructuring and workout-agreement specialists, and legal professionals with a deep understanding of credit agreements and related legal arrangements. The firm maintains internal and external financial control systems, and it integrates thorough risk management practices into the investment process to ensure sound decision-making.
Marathon focuses its efforts on three primary credit strategies. Its corporate credit strategy targets all kinds of distressed and non-investment-grade opportunities, including domestic and global high-yield corporate securities, corporate debt transactions such as debt-for-equity swaps, leveraged loans, credit default swaps, and corporate restructuring and bankruptcy situations. Marathon relies on its investment teams in Singapore and London to deliver a global scope to this strategy. Construction of the portfolio follows a clearly articulated diversification, liquidity and risk-management framework, as is the case for all Marathon portfolios.
Marathon's structured-credit strategy targets distressed and non-investment-grade structured credit securities. Specialized investment teams focus on several different categories of investments in this area, including commercial mortgage-backed securities (CMBSs), residential mortgage-backed securities (RMBS) and other structured credit securities, such as consumer asset-backed securities, collateralized loan obligations (CLOs) and collateralized debt obligations (CDOs). Another team within the strategy targets opportunities in commercial real estate debt in which Marathon acquires stressed debt and originates new loans secured by real estate assets.
The company's third strategy focuses on emerging markets in Eastern Europe, Asia and Latin America. It targets an array of investment opportunities, including distressed debt, dislocated sovereign and corporate debt, currencies and situational investment opportunities. The strategy is founded on taking advantage of opportunities through tactical trading techniques.
Marathon also operates a platform to deliver customized managed separate accounts to institutional clients who want to address special needs not fulfilled by the company's standard strategies. A customized strategy can provide clients with flexibility in relation to geographic exposure, liquidity, risk/reward objectives, time horizon and other basic parameters within Marathon's areas of competency.
Co-founder and co-managing partner Bruce Richards serves as the chief executive officer (CEO) of Marathon Asset Management. He is also portfolio manager of the company's structured-credit strategy. Prior to establishing Marathon, Richards served as managing director of fixed income at Smith Barney, now known as Morgan Stanley Smith Barney, and at Donaldson, Lufkin and Jenrette. Richards completed a bachelor's degree in economics at Tulane University.
Co-founder and co-managing partner Louis Hanover serves as the chief investment officer (CIO) of Marathon Asset Management. Hanover is also portfolio manager for the company's corporate credit strategy and its managed separate account product. In his role as CIO, Hanover is responsible for oversight of the company's investments and risk-management activities. Prior to founding Marathon, he was managing director of the global emerging markets debt trading division at Morgan Stanley Smith Barney. Hanover completed a bachelor's degree in economic history and an MBA at the University of Chicago.