Axonic Capital | Structured Credit & Investment Funds
Axonic Capital: A Deep Dive into a Structured Credit Powerhouse
In the ever-evolving world of finance, certain firms distinguish themselves through a combination of strategic foresight, specialized expertise, and a disciplined approach to investment. Axonic Capital, a New York-based investment firm, is a prime example of such an institution. With a laser focus on structured credit and a commitment to delivering value to its investors, Axonic has carved out a significant niche for itself in the competitive landscape of alternative investments. This article provides an in-depth look at Axonic Capital, exploring its history, investment philosophy, areas of expertise, and its impact on the financial markets.
Unveiling Axonic Capital: A Legacy of Excellence
Founded in 2010 by Clayton DeGiacinto, Axonic Capital emerged with a clear vision: to capitalize on opportunities within the structured credit markets. DeGiacinto, a graduate of the United States Military Academy at West Point and the Wharton School at the University of Pennsylvania, brought a unique blend of discipline, leadership, and financial acumen to the firm. His background, which includes a tenure at Goldman Sachs & Co. where he led a mortgage trading desk, and his role in building the mortgage investment platform at Tower Research Capital LLC, provided a solid foundation for Axonic’s future success.
The firm’s leadership team, many of whom have been with Axonic since its inception, has fostered a culture of longevity and stability. This continuity has been instrumental in building long-term relationships with investors and navigating the complexities of the market with a steady hand.
The Axonic Philosophy: A Disciplined and Strategic Approach to Investment
At the heart of Axonic Capital’s success lies its unwavering commitment to a disciplined and fundamentally driven investment philosophy. The firm’s approach is characterized by several key principles:
A Focus on Cash Flow Generative Assets: Axonic prioritizes investments in assets that generate consistent and predictable cash flows. This focus on income-producing securities provides a stable foundation for their investment portfolios.
Expertise in Niche Markets: The firm has cultivated deep expertise in niche areas of the structured credit market, allowing them to identify and capitalize on opportunities that may be overlooked by larger, more generalized firms.
Long-Term and Intentional Decision-Making: Axonic takes a long-term view of the market, making investment decisions that are carefully considered and aligned with their strategic objectives. This patient approach allows them to weather market cycles and deliver sustainable returns to their investors.
Systematic and Research-Driven: The firm employs a rigorous, research-driven process to identify and evaluate investment opportunities. By combining top-down and bottom-up analysis with sophisticated quantitative models, Axonic is able to identify mispriced assets and mitigate potential risks.
Sector Overview: Mastering the Complexities of Structured Credit
Axonic Capital’s expertise spans a wide range of sectors within the structured credit market. This specialization allows them to offer investors a diversified and alternative source of income to traditional assets. Here’s a closer look at their key areas of focus:
Residential Mortgage-Backed Securities (RMBS)
RMBS are securities backed by pools of residential mortgages. Axonic’s expertise in this sector allows them to navigate the complexities of the housing market and identify opportunities in both agency and non-agency RMBS. They have a deep understanding of the underlying collateral and the various factors that can impact the performance of these securities.
Commercial Mortgage-Backed Securities (CMBS)
CMBS are backed by mortgages on commercial properties, such as office buildings, retail centers, and industrial facilities. Axonic’s team of experts analyzes the credit quality of the underlying loans and the economic fundamentals of the commercial real estate market to identify attractive investment opportunities. The firm has a particularly strong track record in the Freddie Mac Small Balance Loan (SBL) program, having been chosen as the initial third-party purchaser of Freddie Mac SBL B-Pieces at the inception of the program.
Commercial Real Estate (CRE)
Beyond CMBS, Axonic is also actively involved in direct investments in commercial real estate. The firm looks for mispriced, overlooked, or distressed opportunities in the CRE sector, where they can leverage their informational advantages and experience in structured credit to unlock value. A recent strategic move in this area was the hiring of James Jordan, formerly the head of Taconic Capital Advisors’ CRE business, to enhance Axonic’s commercial real estate investment platform.
Asset-Backed Securities (ABS)
ABS are securities backed by a variety of assets other than mortgages, such as auto loans, student loans, and credit card receivables. Axonic’s expertise in this diverse sector allows them to identify opportunities across a wide range of asset classes and build portfolios that are resilient to market fluctuations.
Systematic Fixed Income
Axonic’s Systematic Arbitrage Strategy specializes in fixed income markets, taking advantage of dislocations in relative prices and the volatility of interest rate derivatives. This market-neutral strategy provides investors with exposure to a unique and diversified set of fixed income sub-markets, generating returns that are uncorrelated to common risk factors.
Axonic's Funds: A Gateway to Structured Credit Investing
Axonic Capital offers a range of investment vehicles to meet the diverse needs of its institutional and high-net-worth clients. While the firm manages a number of private funds, two of its public funds are particularly noteworthy:
Axonic Strategic Income Fund (AXSIX)
Launched in late 2019, the Axonic Strategic Income Fund seeks to maximize total return through a combination of current income and capital appreciation. The fund invests primarily in income-producing structured credit securities, including RMBS, CMBS, and ABS. AXSIX has seen impressive growth, crossing the $1 billion AUM milestone in just 17 months. The fund’s success is a testament to Axonic’s ability to navigate the challenges of the market and deliver strong risk-adjusted returns to its investors. The fund has a management fee of 0.85% and a minimum investment of $25,000.
Axonic Alternative Income Fund (AAIDX)
The Axonic Alternative Income Fund is a non-diversified, closed-end interval fund that seeks to provide investors with a high level of current income and, secondarily, capital appreciation. The fund invests in a portfolio of structured credit securities, with a focus on those that are less correlated to traditional fixed income markets.
In addition to these public funds, Axonic manages a significant number of private funds. According to data from Preqin, the firm manages 5 private capital funds and 38 hedge funds, which include strategies such as Asset-Backed Lending, Event-Driven, Long/Short Credit, Multi-Strategy, and Statistical Arbitrage.
Assets Under Management (AUM): A Growing Force
Axonic Capital’s assets under management have seen significant growth in recent years, reflecting the firm’s strong performance and the increasing demand for alternative credit strategies. While different sources report slightly different figures, the most recent data from CAIS Group puts Axonic’s AUM at over $6.2 billion as of May 31, 2025. This represents a substantial increase from the $4.3 billion reported by Morningstar in January 2024, and the $2.3 billion reported by CapitalAUM. This growth is a clear indicator of the firm’s success in attracting capital and delivering value to its investors.
Corporate Social Responsibility: A Commitment to ESG
Axonic Capital recognizes the importance of environmental, social, and governance (ESG) factors in its investment analysis and corporate practices. The firm believes that by integrating ESG considerations into its investment process, it can not only manage risk and potentially maximize returns, but also create a positive impact on society and the planet. Axonic has also implemented internal ESG policies that focus on environmental conservation, employee well-being, diversity and inclusion, and corporate governance.
Strategic Partnerships: Expanding Reach and Capabilities
Axonic Capital has forged a number of strategic partnerships to enhance its capabilities and expand its reach in the market. One of its key partnerships is with Skypoint Capital, an Atlanta-based firm that markets the Axonic Strategic Income Fund. This partnership has been instrumental in the fund’s rapid growth and success.
More recently, Axonic made a significant move to bolster its commercial real estate platform by hiring James Jordan from Taconic Capital Advisors and entering into an agreement to transfer Taconic’s CRE Dislocation Fund IV to Axonic. This strategic transaction brings a talented team and a valuable portfolio of assets to Axonic, further strengthening its position in the CRE market.
Axonic has also been a key partner to Freddie Mac, having been an active participant in their K-Series and Small Balance Loan (SBL) programs since 2013, investing over $1.5 billion in Freddie Mac multifamily B-Pieces.
Awards and Recognition: A Testament to Excellence
Axonic Capital’s commitment to excellence has been recognized by the industry through a number of prestigious awards. In 2025, the firm’s Axonic Credit Opportunities Master Fund was named the “Best Performing Fund in 2024” in the Structured Credit (AUM > $500m) category at The Hedge Fund Journal Performance Awards. In 2022, the Axonic Systematic Arbitrage Fund was awarded “Best Fixed Income Arbitrage Hedge Fund” at the Hedgeweek US Awards. These awards are a testament to the firm’s expertise and its ability to deliver outstanding performance to its investors.
The Axonic Team: A Culture of Expertise and Collaboration
Axonic Capital’s success is driven by its team of approximately 60 professionals, who bring a wealth of experience and expertise to the firm. The firm’s leadership team has fostered a culture of collaboration and intellectual curiosity, where every member of the team is encouraged to contribute to the investment process. By bringing together a diverse group of talented individuals, Axonic has created a dynamic and innovative environment that is well-equipped to navigate the complexities of the market.
The Future of Axonic Capital
As Axonic Capital looks to the future, it is well-positioned to continue its trajectory of growth and success. The firm’s deep expertise in structured credit, its disciplined investment philosophy, and its commitment to delivering value to its investors provide a solid foundation for long-term success. With a strong leadership team, a talented and dedicated team of professionals, and a clear vision for the future, Axonic Capital is poised to remain a leader in the world of alternative investments for years to come.
Axonic Capital Leadership & Teams
Clayton DeGiacinto – Managing Partner, Co-Chief Investment Officer
Matthew Weinstein – Partner, Co-Chief Investment Officer
James Jordan – Partner, Head of Commercial Real Estate
Peter Carey – Partner, Head of Business Development
Benjamin Bernstein – Principal, Portfolio Manager
Peter Cecchini – Principal, Director of Research
Deniz Cicek – Principal, Portfolio Manager
Kushal Dhody – Managing Director
Stephane Durand – Director Structured Credit Trading
Alex Fleming – Managing Director
Steven Jury – Managing Director, Portfolio Manager
Tyler Kimball – Managing Director
Erik Nygaard – Principal, Portfolio Manager
Jack O’Brien – Managing Director
Jonathan Salter – Principal, Portfolio Manager
Eric Sitman – Managing Director, Portfolio Manager
Robert W. Duggan – Managing Director
Christopher Greenwell – Managing Director
Stephanie Naratil – Head of Investor Relations
Cara Drum Petruccelli – Managing Director
Travis Printz – Managing Director
Kalina Ranguelova – Managing Director
Michelle Cheng – Director of Risk Management
Tiffany Leung – Managing Director
Anthony Faltorusso – Director of Portfolio Finance and Treasury
Chris Hughes – Principal, Chief Operating Officer / Chief Compliance Officer
Jess Saypoff – Principal, General Counsel
Headquarters: 520 Madison Ave., New York, NY 10022, USA
Phone: 212-259-0430
Number of employees: Approx. over 60
Website: www.axoniccap.com