Covalent Partners offers advice on investments, both long and short, in a wide range of domestic and international securities and financial instruments, including common stocks, preferred stocks, corporate bonds (investment grade and non-investment grade), bank debt (assignments and participations) and other loan obligations, mezzanine financings, convertible securities and other equity-linked instruments, US government securities, debt/equity indices and index futures/options, ETFs, closed-end funds and other commingled investment vehicles, credit and fixed income derivatives, equity and equity-linked derivatives and futures, currencies and currency forwards, swaps and contracts for differences, mortgage-backed and other collateralized obligations, asset-backed instruments and other structured notes, municipal bonds, and other public and private instruments, including Rule 144A securities, private equity and limited partner interests. Covalent's investment approach focuses on analyzing fundamental factors. When making investment decisions, the firm typically considers industry- and company-specific cyclical factors and technical factors, such as the availability and recent trading price and volume characteristics of an instrument targeted for purchase or sale. They also analyze other other factors such as the relative rights and potential standing of various instruments in the event of issuer financial distress (including in the event of a possible bankruptcy). Covalent's investment strategies include: long-term purchases (securities held at least one year); short-term purchases (securities sold within a year); trading (securities sold within 30 days); short sales; margin transactions; option writing, including covered options, uncovered options or spreading strategies; exchange-traded and OTC derivatives, including interest rate, currency and equity swaps; interest rate caps, collars and floors; equity and currency options; futures and options on futures; forward foreign currency exchange contracts; capped, inverse, dual index and range floaters; and structured notes; and others. In addition, the firm may engage in hedging transactions for some of their funds. Hedging transactions are structured with the goal of taking advantage of arbitrage opportunities either within a company’s capital structure or across a particular industry.