Last week, Bloomberg has penned an amazing piece on Canyon Partners. I know a few of the analysts at Canyon Partners and it really is an amazing organization. Canyon is and has been involved in a number of very high profile bankruptcies in the past years. Off the top of my head, they are / have played Lehman Brothers (through the Paulson Group), Tribune, Americredit, Charter, Univision, and many others. From looking at their 13F, they were involved in CIT and Spansion on the post - reorg side.
"The credit culture of Drexel gave me an important way to frame investment opportunities. The idea is to combine a full understanding of whether a company will be able to pay back its obligations, in sort of a ratings-agency sense, with a focus on whether the company has a business model or competitive advantage that builds long-term value. Drexel was unique in looking at credit quality this way and we think it’s a great way to think about any investment in a business"
"We grew up in an environment at Drexel where the head trader always reminded us that you never went bankrupt by taking a profit. We’re not immune to the common mistakes of being overly risk averse on winning positions by not letting them run and taking on excess risk with losing positions by holding on.We’ve gotten better at letting our winners run. Part of that comes from really understanding what we’re betting on. Say you bought something at $5 that’s now at $20. If $15 of that $20 is just the cash the company has accumulated since you bought in, the bet on the future business is still only $5. Absent a change in your thesis, why would you sell in a case like this just because you’ve already made a bunch of money"