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Given solid fundamental credit insights, a reasonable time horizon, and the ability to withstand short-term volatility, we believe credit opportunities in the investment grade corporate bond market can be exploited to achieve attractive risk-adjusted returns.

Investment Approach

The strategy seeks to exploit sub-optimal time horizons that have become a feature of the investment grade credit market. With no tolerance for short-term underperformance, many make decisions that are an overreaction to minor data, or make decisions that seek to perfectly time turning points in credit direction. The second opportunity is what is perceived to be degradation in the quality of fundamental analysis in the market today. We focus on fundamental credit work, and being able to price the risk/reward of that work over our time horizon. In a market that determines prices based on the next headline or on noise, our depth of credit research allows the capture of value based on others’ mistakes.

Distinguishing Features

  • Proprietary, rigorous, independent, bottom-up fundamental research process resulting in a deep understanding of issuer and industry dynamics
  • Experienced team of investment grade corporate bond specialists executing a disciplined and repeatable process
  • Active portfolio management to exploit varying market conditions with quantitative risk controls and qualitative risk assessments seek to minimize portfolio relative volatility.
  • Excellent historical long-term track record

Investment Process

Rigorous bottom-up fundamental credit research
  • Strong and independent research is the cornerstone of our process
  • Proprietary risk and relative value rating system
Liquidity Management
  • Small yield give ups in order to increase portfolio liquidity
  • Change in fundamental credit assessment can result in immediate purchase or sale
Portfolio Construction
  • Experienced and dedicated portfolio managers and analysts are full partners in the portfolio construction and monitoring process allowing the team’s best ideas to emerge
  • The team seeks to maximize return per unit of risk
Constant focus on downside risk
  • Well-diversified portfolios provide multiple potential sources of alpha, and allow the Team to let credit ideas come to fruition over the long term