Get the latest insights and analysis from our team of experts.
Our investment approach is unique. As a consequence, our portfolios will look different when compared to a more traditional index orientated approach. We want our investors to fully understand how we think about the concepts that underpin our value philosophy and how these are applied within our portfolio construction. We hope these insights will assist those who want to better understand not just how our returns are generated but what the benefits of our approach are within overall asset allocation.
We continuously publish insights about our investment approach. These cover both the underlying investment philosophy, portfolio construction and more detailed investment cases which best highlight our value focus.
13 December 2022
Many fund selectors wisely focus on tracking error and maximum drawdown to assess the riskiness of a strategy relative to the benchmark. The drawback of such a narrowly focused approach to these measures, in selection, is lacking upside when markets turn.
6 September 2022
Our approach to credit investing delivers long term outperformance with high probability, but it can also improve risk-return when combined with more traditional investment styles.
1 July 2022
Investing with a focus on value rather than index weightings over the longer term, allows disciplined investors to capture higher yields without compromising risk-return metrics.
4 May 2022
The concept of value investing is well understood in equities but often misunderstood in credit markets. In equities value is often considered in absolute terms; in credit markets value is commonly viewed in relative terms. An undervalued bond is one that trades at a wider spread relative to similar rated bonds.
21 April 2022
Investors can improve the risk/return profile of their Emerging Market Sovereign Fixed Income portfolios by including EM Corporate Bonds. Diversification will increase, rate sensitivity will fall, and the Information Ratio should rise as it has done historically.
11 April 2022
We are a value manager across the global credit markets. Unlike larger managers, we can access bonds across the size spectrum in both large and smaller credits. In this note we provide an example of a small cap Energy issuer in the North Sea which has been acquired by a larger operator. The bond is a 1% position in our Global High Yield portfolio – the acquisition will further enhance our returns.
4 April 2022
Do current yields represent a good entry point for high yield investors?
21 March 2022
3 February 2022
10 December 2021
Value investing in equities has underperformed for the past decade but continues to deliver in credit markets – we look at some of the reasons for this divergence and the associated opportunities and risks of a value-based approach in credits.
22 September 2021
While US companies currently represent more than half of the global high yield index, our bottom-up selection process suggest that value is better found in other areas of the market.
10 August 2021
The main EM credit indices are constructed based on the market cap size of an issue. The larger the issuer size, the larger their representation within the index. This often results in highly leveraged issuers representing a significant proportion of these indices. As a value investor we focus on the size of the opportunity not the index weight. Over multiple market cycles since 2010 we have demonstrated that some exposure to small cap enhances long term returns. In this short note we provide an example of a smaller issuer which highlights the opportunities that still exist for active, unconstrained investors.
16 June 2021
Investors are growing increasingly concerned about the likelihood of rising inflation however transitory it might turn out to be.
5 April 2021
Our active bottom-up approach to credit investing allows us to harvest size premiums effectively through the cycle.
20 February 2021
Superior long term returns through systematic investing in Value and Size.
17 January 2021
An allocation suitable for an uncertain world.