A true-to-style, actively managed US limited-term fixed income solution. We seek to provide stable income while mitigating interest rate risk through an agile and deliberate investment process.
The team’s philosophy is based on three core beliefs:
Fixed income investors are human, a premise overlooked by the efficient market hypothesis.
Fixed income is not a single market, but rather a vast collection of markets with differing degrees of efficiency – structurally and over time. These differences inform how we take risks across sectors. Generally speaking, interest rate and FX markets tend to be more efficient, while markets with a credit component tend to be less so but have a significant mean-reversion aspect and present the most opportunities to capture value in the extremes.
Model uncertainty, differing constraints, and System 1 thinking drive deviations from fundamental value. These factors are knowable and can be leveraged to derive consistent value over the long run.
Centered on strategy design and client fit
- A platform of multisector solutions designed for and continuously evaluated against clients’ financial outcomes
Culture of ownership
- Fostered by a flat, integrated team structure and an empowered, passionate staff
Agile and deliberate process
- Fueled by evidence-based market research seeking to deliver predictable and differentiated return streams
Our investment process combines a proprietary, bottom-up, fundamental approach to investing with a robust culture of risk management. We maintain a flat organizational structure across portfolio managers, research analysts, and traders.
Key tenets of our process:
- Collaboration every step of the way
- Fundamental approach to security selection
- Consensus-based decision making
- Robust culture of risk management
For more information about our Credit capabilities
Risks
The value of the portfolio may fall as well as rise, and you may not receive back the amount invested.
Fixed income securities can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer's ability to make interest and principal payments on its debt. This includes prepayment risk, the risk that the principal of a bond that is held by a portfolio will be prepaid prior to maturity at the time when interest rates are lower than what the bond was paying. A portfolio may then have to reinvest that money at a lower interest rate.
Securities in the lowest of the rating categories considered to be investment grade (that is, Moody’s Baa or S&P BBB) have some speculative characteristics.
High yielding, non-investment-grade bonds (junk bonds) involve higher risk than investment grade bonds.
Liquidity risk is the possibility that securities cannot be readily sold within seven days at approximately the price at which a fund has valued them.
International investments entail risks including fluctuation in currency values, differences in accounting principles, or economic or political instability. Investing in emerging markets can be riskier than investing in established foreign markets due to increased volatility, lower trading volume, and higher risk of market closures. In many emerging markets, there is substantially less publicly available information, and the available information may be incomplete or misleading. Legal claims are generally more difficult to pursue.
Portfolios may invest in derivatives, which may involve additional expenses and are subject to risk, including the risk that a security or securities index to which the derivative is associated moves in the opposite direction from what the portfolio manager anticipated. Another risk of derivative transactions is the creditworthiness of the counterparty because the transactions rely upon the counterparties’ ability to fulfill their contractual obligations. US Treasury futures are used to manage portfolio duration on a fully covered basis (no leverage is utilized). Total-rate-of-return swaps are utilized as an overlay strategy. Credit default swaps can be used to gain credit exposure, reduce credit exposure, or express a view of convergence between two credits. Currency forwards can be used to tactically increase or reduce the portfolio’s currency risk in a liquid, timely manner during volatile market periods. Interest rate swaps can be used to limit, or manage, the portfolio’s exposure to fluctuations in interest rates. Derivatives used are strictly constrained by client investment policy
Interest payments on inflation-indexed debt securities will vary as the principal and/or interest is adjusted for inflation.
Diversification may not protect against market risk.
IBOR risk is the risk that changes related to the use of the London interbank offered rate (LIBOR) or similar rates (such as EONIA) could have adverse impacts on financial instruments that reference these rates. The abandonment of these rates and transition to alternative rates could affect the value and liquidity of instruments that reference them and could affect investment strategy performance.
The disruptions caused by natural disasters, pandemics, or similar events could prevent the strategy from executing advantageous investment decisions in a timely manner and could negatively impact the strategy’s ability to achieve its investment objective and the value of the strategy’s investments.
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