Diameter Capital Partners
Diameter Capital Partners LP is a New York-based investment management firm specializing in credit-focused long/short investing across the full credit spectrum from investment-grade through distressed debt, employing a fundamentally driven, research-intensive approach to identify and capitalize on credit mispricings in corporate credit markets. According to its website at diametercapital.com, the firm manages capital for institutional investors through hedge fund and separately managed account vehicles, constructing concentrated credit portfolios that combine long positions in undervalued credit instruments with short positions in overvalued or deteriorating credits. Diameter's credit investment approach draws on deep fundamental analysis of individual issuers, capital structures, and credit market dynamics to generate differentiated return streams with low correlation to equity markets and traditional credit benchmarks.
Diameter Capital's investment process, described at diametercapital.com, begins with intensive fundamental research on individual corporate issuers — analyzing business models, competitive positions, financial performance, management quality, and capital allocation strategies to assess the intrinsic credit quality of each company relative to its market-traded credit spreads. The firm's credit research platform covers a broad universe of investment-grade, high yield, and leveraged loan issuers, generating proprietary credit assessments that identify situations where market prices diverge significantly from the firm's fundamental valuation of credit risk. Diameter's portfolio construction combines its highest-conviction long credit positions — typically undervalued credits in strong businesses with improving fundamentals — with credit short positions targeting issuers whose market valuations significantly underestimate their fundamental credit deterioration risk.
Diameter Capital Partners was founded by Scott Goodwin and Jonathan Lewinsohn, both veterans of leading credit investment organizations who combined their expertise to build Diameter's concentrated, research-intensive credit investment platform. According to diametercapital.com, the firm's founders instilled a culture of intellectual rigor, honest assessment of investment risk, and genuine alignment with investor interests that shapes every aspect of Diameter's investment process. Diameter's combination of fundamental credit research depth, concentrated conviction-based portfolio construction, long/short flexibility across the credit spectrum, and founder-led investment culture positions it as a distinctive and experienced manager in the institutional credit hedge fund market, competing on the quality of its research and the discipline of its investment process rather than on scale or strategy breadth.