Invest in ‘Special’ asset classes that present opportunities to capture implicit premiums, in order to mitigate capital risk through ‘Downside Protection,’ with a low probability of binary outcomes.”
Primarily, these are assets that are uncorrelated with the financial market, such as arbitration disputes, financially distressed companies, overdue public securities (credit rights and “precatórios”), non-performing private securities, properties in auctions, non-executory credits (NPLs), judicial credit rights, compensations, judicial recoveries, bankruptcies, etc.