- Founded in 1999 by Steven G. Lampe and Richard F. Conway
- Targets distressed and special situations of lower middle market public and private companies in North America
- Investment strategy is a hybrid of: Event Driven, Special Situations, Deep Value and Distressed investing
- 18 year track record generating alpha by investing in the smaller end of the capitalization spectrum - a niche where larger funds are encumbered by scale
- Proven ability to produce results in good and bad markets
- Team of 6 professionals with an average Firm tenure of 13 years, demonstrating our commitment to, and investment in, our team
- The firm has approximately $85 million assets under management in a closed legacy fund currently in wind-down. The firm is launching a new, limited term fund in 2018.
Lampe, Conway & Co. LLC's primary investment motivation is to achieve superior investment returns for its investors. It attempts to accomplish this goal while carefully protecting the investment principal that is put in its care. In accordance with that goal, Lampe, Conway & Co. LLC strongly adheres to the following investment principles:
- Analyze and minimize investment risk; protect principal at all cost.
- Limit fund size
- Focus on an inefficient market segment where there is little or no independent research coverage
- Buy cheaply based on a thorough appreciation of intrinsic asset or cash flow values
- Target uncrowded opportunities with less competition and attractive risk-return spreads
- Invest across the capital structure
- Focus on publicly traded securities where outcomes can be influenced from non-control stakes
- Opportunistically call and manage capital as target market expands
Lampe, Conway & Co. LLC’s value-oriented investment approach to distressed investing relies upon extensive due diligence and aggressive portfolio management to capture value in the securities of troubled companies.
- For each investment, the Principals perform a rigorous, bottom-up financial analysis to understand all elements of the security’s current and potential value.
- Each transaction requires several levels of analytical work for full comprehension of the intricacies of the troubled business and its capital structure. In addition to gaining a thorough understanding of the issuer’s business and prospects, the Principals must appraise the company’s securities and its corporate structure to guard against liquidity and timing risks.
- Once an investment has been initiated, the Principals proactively manage each position, actively monitoring an investment’s progress in realizing the event or catalyst that will drive its ultimate return. Positive investment returns from these positions are typically generated over the longer term and may be subject to volatility in the interim.
- Positions are initiated only after a clear and defined exit strategy has been identified.
Lampe, Conway & Co. LLC uses stringent risk controls to protect investors' capital and minimize downside risk. At the position level, we employ value based bottom-up analysis coupled with ongoing dialogue and visits with management. On a portfolio level, disciplined portfolio management spreads risk through diversification such that no single position can threaten the overall performance of the portfolio. On a strategy level, we maintain a disciplined focus on distressed investing.
- Both Principals are actively involved in every investment throughout the life of the position
- Position limits and portfolio diversification guidelines across industries and sectors ensure that no one position creates undue risk
- Extensive due diligence includes rigorous assessment of operations, accounting and management
- Toe-hold investments - manageable positions with capacity for growth optimize portfolio liquidity and flexibility
- Daily marking of portfolio and monitoring of price movements
- Monthly independent pricing of portfolio
- Redundancy in trading, research and administrative positions
- Leverage long-term relationships to influence outcomes and protect LPs' interests
- Industry-standard best practices, including third party valuation