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Given the higher risk nature of the high yield asset class, we believe the management of risk and return is inseparable. In an attempt to seek strong and consistent performance, we focus on generating strong risk-adjusted returns, while actively managing downside risk.

Investment Approach

The strategy takes a dynamic approach to investing, combining bottom-up and top-down analysis to uncover relative value opportunities in the broad high yield market. Rigorous, in-house credit research using a proprietary risk and relative value rating system that helps position the portfolio based on the trade-off between risk and expected return. Our bottom-up fundamental research typically contributes at least two-thirds of the alpha generated. We combine bottom-up fundamental credit research with a top-down strategic review to seek consistent, competitive risk-adjusted returns across varying market environments.

Distinguishing Features

  • Experienced team of high yield specialists who navigate through changing market conditions executing a disciplined and repeatable process
  • Rigorous, independent proprietary credit research produced by a team of dedicated high yield career analysts
  • Credit selection that seeks to maximize return per unit of risk, resulting in reduced volatility of returns
  • Combined bottom-up and top-down approach to pursue strong risk-adjusted returns through varying markets
  • Excellent long term historical 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

Tactical portfolio management

  • Adjust quality, capital structure and industry positioning to take advantage of different market environments

Portfolio construction

  • Experienced and dedicated portfolio managers and analysts are full partners in the portfolio construction and monitoring process
  • Relative value decisions are made to trade off risk and reward to optimize portfolio positioning

Constant focus on downside risk

  • Dynamic position management according to proprietary risk and relative value ratings
  • Well-diversified portfolios and a strong sell discipline are good examples of our downside risk management approach