Value investing in the global credit markets

At Absalon Capital we believe in active bottom-up bond selection. We ignore index weightings and instead focus on identifying undervalued bonds irrespective of their sector or geography. Our portfolios will deviate substantially from an index-orientated approach. This approach has delivered consistent outperformance since inception in 2006 with lower levels of default.

Executive Summary:

Distinctive focus on Value
Provides exposure to less well covered areas of the market
Focused on opportunity, not index weights – index agnostic
Active, unconstrained, conviction-based

What are benefits of this approach for investors?

Higher spread relative to credit quality
Minimize permanent loss of capital - lower levels of default historically
Provides access to less well covered and inefficiently priced bonds
Superior long-term returns

We invest with conviction across 75-125 issuers by identifying undervalued bonds via a rigorous bottom-up process. We search for bonds with a high excess spread relative to expected default risk and seek to avoid over leveraged companies. We do not invest in bonds rated below B.

Why invest with us?

Our funds suit investors looking for an active approach, underpinned by fundamental research with a strong value bias. We seek to identify and invest in undervalued bonds relative to their credit quality, investing with conviction in a relatively concentrated portfolio. We avoid investing in highly leveraged issuers and will zero-weight areas of the market which we believe are overvalued or fundamentally unattractive.

ESG policy

Absalon Capital is a signatory to the PRI (Principles for Responsible Investment) and is an active asset manager that seeks to engage directly and through collaboration with issuers of corporate debt.