Begin with the downside
Before evaluating a potential return, an investment process needs a clear view of what might impair capital. That includes the underlying asset, counterparties, financing terms and access to liquidity.
Consider the structure
The same asset can present different risks under different financing arrangements. Leverage, maturity and contractual obligations should be assessed alongside the quality and visibility of cash flow.
Return to fundamentals
Downside awareness does not remove uncertainty. It creates a more informed basis for deciding where to allocate capital and how to monitor it.
This perspective describes Cavren Capital’s philosophy. It does not constitute investment advice or an offer of any investment.
Our investment framework