Overview
Advisory Business
Prospect Capital Advisors, LLC is currently registered as an investment adviser with the
SEC. From January 2001 to June 2015, the Firm was registered with the State of California
Department of Business Oversight. Daniel W. Mendoza is the principal owner and
Managing Member of Prospect.
Advisory Services
Prospect serves as the general partner and investment adviser to Prospect Advisors, L.P.
and Prospect Advisors QP, L.P. (collectively, the “Funds”), which are privately-placed
pooled investment vehicles. In addition, Prospect provides investment services to
separately managed accounts (the “SMA(s)” or the “Client(s)”). Interests in the Funds are
offered to certain qualified Investors as discussed herein.
The Funds are long/short funds investing primarily in equities. The Funds’ goal is to
generate absolute returns, primarily through long and short investments in publicly traded
domestic equities, seeking to protect and grow assets in all market environments.
Prospect’s investment philosophy is oriented towards a microeconomic approach to
investment selection and risk minimization. Prospect makes investment decisions and
attempts to reduce downside risk through in-depth analyses of portfolio companies.
The agreement of Limited Partnership, Confidential Offering Memorandum and
Subscription Application (collectively, the “Fund Documents”) for the Funds impose
no
limits on the types of securities or other instruments in which the Funds may take positions,
the type of positions it may take, the concentration of its investments, or the amount of
“leverage” the Funds may employ. Prospect has broad discretion to employ a wide variety
of investment techniques, even if they involve changes in the investment approach initially
anticipated.
The Funds’ investments are tailored to comply with the investment guidelines disclosed in
the Fund Documents. Each potential Investor receives a complete set of Fund Documents
prior to investing in the Funds.
The investment strategy employed for SMAs may be similar to that of the Funds. By
signing an Investment Advisory Agreement or Sub-Advisory Agreement (the
“Agreement”), such Clients designate Prospect as an investment manager or sub-advisor
over their account.
Certain SMA Agreements impose limits or restrictions on investing in certain securities or
types of securities, which is specific to the corresponding Client’s tolerance and goals.
Prospect is willing to accept certain restrictions in limited and specific instances through
an SMA at the direction of such Clients.
Prospect does not provide portfolio management services to a wrap fee program.
Assets Under Management
As of December 31, 2023, Prospect has $439.7 million in discretionary regulatory assets
under management. The Firm does not manage assets on a non-discretionary basis.