How We Invest
As a value focused credit manager, we ignore index weights and seek to identify opportunities irrespective of sector, rating or region. A large asset base would inhibit our ability to continue generating superior returns. We therefore limit the total assets we are prepared to manage on behalf of our investors.
We invest with conviction across 75-125 issuers. We identify the undervalued bonds in our portfolios through a bottom-up process where we search for securities with a high excess spread relative to expected default risk. We seek to avoid over leveraged companies and do not invest in bonds rated below B. Historically our strategies have delivered superior returns relative to a passive or index orientated approach with significantly fewer defaults.
Unlike value investing in equity markets where value can remain trapped for long periods of time, a value investor in the credit market benefits from a defined exit; the maturity date of the bond. Our focus on undervalued credits with lower levels of leverage has ensured that we have delivered superior returns and substantially lower levels of defaults compared to the wider market.
WHY INVEST WITH US?
Our approach suits investors who wish to gain meaningful exposure to the less efficient areas of the credit market and thereby capture the superior risk/return while at the same time providing greater diversification to an existing portfolio. The higher yields our strategies offer come with lower levels of default and greater flexibility to exploit value opportunities which often cluster in sectors and geographies.