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.
- 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.Read more about our value focus