There are three main pillars to our strategy.
Each is actively managed and adapted to changing market conditions and opportunities. The focus is on isolating the returns from fixed income instruments that offer the most value, while preserving capital through disciplined risk management.
- We search for value in the credit portion of a bond, both on an outright and relative basis.
- We take advantage of the inefficiencies created by the opaque nature of bond markets and the behavioural patterns of market participants.
- We capitalize on regulatory changes that place restrictions on banks and financial institutions.
- We actively manage and mitigate our portfolio’s interest rate exposure, with a view to minimize volatility and preserve capital.
- We utilize fundamental and technical analysis to model interest rate curves. We use these models to search for opportunities and to determine the most effective methods to express interest rate views.
- Our risk management infrastructure is built with the objective of capital preservation.
- On a daily basis, we generate an exhaustive set of risk metrics which are reviewed and discussed by management.
- We have developed a dynamic process to measure our portfolio sensitivities and to manage our overall risk.