FORT LAUDERDALE, Fla. -- Richmont Investment Management will begin marketing its high-yield investment strategy to institutions and high-net-worth investors, and has selected a former Vermont state treasurer to assist.
Richmont's strategy focuses on companies in turnaround situations, and is run by Dan Johnedis, director of fixed income and portfolio manager.
Mr. Johnedis said Richmont invests in companies with low-tier to middle-tier credit ratings. While they won't invest in companies in Chapter 11 bankruptcy, they will invest in companies on the cusp of filing.
A company that's out of favor but will be able to pull through is a typical holding for Richmont, he said. For example, Kmart Corp.'s well-publicized financial problems awhile back created opportunities in its bond issues that Richmont exploited, he said. The average rating for its high-yield investments is in the BB or B-range, he said.
To assist with marketing, Richmont retained as a consultant Paul Ruse, who was Vermont state treasurer from 1988 to 1994.
Mr. Johnedis said Richmont's high-yield strategy wouldn't suffer from an influx in assets; he's seeing more attractive deals than he has assets with which to invest.
Richmont Investment Management originally was formed to invest the assets of Richmont Corp., Dallas, parent to Mary Kay Cosmetics Corp., as well as the assets of Richmont's officers and owners.
While Richmont invests in equities and fixed income, it will be offering only its high-yield strategy to institutions, Mr. Johnedis said. Richmont manages about $300 million, with about $100 million of that in fixed income and $50 million in high yield, he said.