Hudson Cove Capital Management

Overview

Hudson Cove Capital Management is a U.S. SEC-registered minority-owned credit manager specializing in asset-backed securities (ABS), mortgage-backed securities (MBS), and asset-based loans (ABL). Founded in 2009 by David Wu and Fred Wang, the firm began as a family office with $100 million in internal capital and started accepting external capital in 2017. The firm's investor base includes sovereign wealth funds, U.S. and foreign pensions, endowments and foundations, healthcare plans, family offices, wealth advisory firms, qualified high-net-worth individuals, and investment consultants. The firm employs nine people and is headquartered in Jersey City, New Jersey. Hudson Cove employs a rigorous, analytical approach to preserve capital and deliver attractive risk-adjusted returns. The firm invests primarily in ABS, MBS, and ABL opportunities, focusing on debt with collateral behind it. The portfolio is dynamically managed to preserve capital in various markets, investing in the lower to middle market where fewer competitors and limited access to capital enable the firm to invest in attractive assets at competitive pricing and execute quickly to capture opportunities. Through rigorous evaluation of credits, operators, and underlying collateral, the firm structures transactions to optimize the potential for attractive risk-adjusted returns generally uncorrelated to most traditional debt and equity investments. The firm's principals have decades of proven experience in structured credit, believing that public and private structured credit markets mature at different points of the credit cycle and are complementary for generating consistent returns over multi-year periods. This specialization across multiple sectors enables Hudson Cove to seek to generate attractive and competitive absolute returns that are generally uncorrelated to the broader fixed income and equity markets. The firm's investment strategy has been recognized, with the Hudson Cove Credit Opportunity Fund winning the HFM US Hedge Fund 2018 Award for Credit – Long Term under $1Bn category.