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Insights

Get the latest insights and analysis from our team of experts.

 

Insights

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.

You can also stay updated with our monthly newsletter or more detailed quarterly investment review. Sign up here.

 

1 July 2022

Value - a key driver of credit returns

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

How we define value in credit markets

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.

11 April 2022

The Power of a Value Bond

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.

10 August 2021

Selective small cap exposure enhances returns in EM corporate credit

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

Well positioned for inflation

Investors are growing increasingly concerned about the likelihood of rising inflation however transitory it might turn out to be.

5 April 2021

Why size matters

Our active bottom-up approach to credit investing allows us to harvest size premiums effectively through the cycle.

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