As managers seek investment opportunities with great returns, turnaround investing has been getting quite the backing. CFA Peter Woodward of MHW Capital Management LLC spoke exclusively with EMF about turnarounds, “The stock market and the economic environment are perfect for turnaround investing. We see lots of ideas.”
The firm based in Florida uses a private equity approach to public companies. MHW Capital invests in the publicly-listed equity of micro-cap companies, companies that have experienced operational shortfalls resulting in a severe decline in stock market capitalization. The firm, which works with investors in all locations, will consider investing in companies with “negative or marginally positive profitability,” those that have market capitalizations ranging from $10 million to $200 million, and with revenue ranging from $10 million to $1 billion.
According to Woodward, MHW Capital, based in Palm Beach Gardens, Fl., has clients who are concerned about the market, “There is concern over transparency, especially in the post Madoff world. People are skeptical of strategies they don’t understand. We invest in public companies and openly show clients our companies’ results. We take extra steps to give investors confidence.” Woodward describes his clients as those who understand turnarounds, “corporate people, families who own businesses and people who like to buy distressed assets.”
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