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.

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Why invest with us?

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.  

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ESG policy

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.

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