Phoenix Fund will pursue an investment philosophy that is based on the principle that capital gains in the medium and long-term can be realised with a portfolio consisting of illiquid securities and high-yield debt instruments. Investment decisions are based on thorough research, sophisticated valuation techniques, and a carefully spread portfolio with a European focus. Phoenix invests in the debt, equity or trade claims of companies in (financial) distress or already in default. The securities of companies in distressed or defaulted situations typically trade at substantial discounts to par value due to difficulties in assigning a proper value for such securities, lack of street coverage, or simply an inability on behalf of traditional investors to accurately value such claims or direct their legal interests during restructuring proceedings. Investments are concentrated in Europe, with smaller holdings in Asia and U.S.