The Portfolio seeks to provide long-term capital appreciation and income generation by investing in corporate debt and income producing equities.

The opportunity

We believe that a flexible capital base can generate attractive opportunities in today’s environment. Low interest rates have created a complacent environment and caused many investors to take more risk in their portfolios. Changes in the economic environment, business fundamentals, credit spreads, or interest rates should lead to increased levels of volatility.

We believe that a bottom-up, fundamental investment approach like ours is well positioned to take advantage of mis-pricings caused by volatility.

Even in the current ultra low-rate environment, the portfolio is designed to generate attractive fixed income returns, while conservatively managing interest rate and credit risk. There is always a business that’s out of favor or misunderstood and we aim to identify these opportunities and develop a proprietary insight about them.

We believe the portfolio is attractive both on a standalone basis and relative to its alternatives and credit indices. Our portfolio is not managed like an index – it is concentrated in our best ideas, which will likely result in a unique collection of investments in different parts of the capital structure. At the same time the portfolio is diversified by business idea as we go to great lengths to ensure that the underlying drivers of the businesses are not based on the same or similar ideas.

Our approach

The Portfolio was created to use our skillset at analyzing business and take advantage of opportunities across the capital structure. We seek fixed-income securities that provide an attractive return through coupon payments and capital appreciation. Since corporate bonds are not traded on exchanges, they can be more prone to pricing inefficiencies. We believe that a skilled credit manager can turn these inefficiencies into opportunity.

Learn more about our investment approach