Our Strategy

There are three main layers to our strategy

Each sub-strategy 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.

Carry

This is the core and foundation of our portfolio.  In this sub-strategy we are looking for corporate bonds which offer strong compensation through the credit spread relative to the risks and volatility.  These are typically shorter maturity bonds (i.e. less than 3y) which on average are held for 6 – 12 months.

Active

This part of the portfolio focuses on securities which offer a strong credit yield, and where we also anticipate performance in the credit spread.  These could be thematic dislocations across markets or sectors, exposures to specific issuers, or relative value trades between two securities.  These positions are usually held for one to six months and will be replaced with more promising opportunities.

Tactical

The last layer involves tactical short-term trading where we seek to capitalize on various opportunities including:

• Capitalizing on the opaque nature of bond markets which creates temporary inefficiencies
• Momentum and technically driven trades
• Generating returns through active participation in the new issue market
• Interest rate opportunities created by the actions (or inaction) of central banks where values have drifted too far in one direction