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September 2020 / VIDEO

US High Yield Bond: What makes us different?

Some key competitive differentiators

 

Key competitive differentiators for our team and our strategy over the years have been a couple of things.

Mostly, the experience level of the team members is high relative to most of the people we compete against.

The focus of the strategy is very important. So our team is spending 100% of our time focusing on the high yield bond market. We run a very focused strategy in the sense that it’s very concentrated. I think that’s been a very good differentiator for us over the years. If people ask how we’ve generated alpha, it’s definitely from concentrated credit selection.

We don’t pigeonhole ourselves in one part of the credit spectrum, one geography, one type of asset; we don’t screen companies and exclude half the universe based on some screening mechanism; our philosophy is to embrace the entire opportunity set, thereby kind of maximising the sources of alpha that we can use in this strategy.

And I think because of that focus and that concentration and that experience level we’ve been able to navigate some of the harder parts of the credit cycle while at the same time adding value by bottom up credit selection.

 

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September 2020 / INVESTMENT INSIGHTS

Making Hard Choices in Extraordinary Times
202009-1313953
RELATED FUND
SICAV
Class I USD
ISIN LU1697877279
A high-conviction portfolio, primarily focused on the traditional US high yield investment opportunity set. Our approach is more concentrated than those of many competitors. The fund seeks to capitalise on price inefficiencies that create attractive relative value opportunities across issuers. View More...
3YR Return
(Annualised)
N/A
Avg Coupon
6.86%
FACTSHEET
Fund Size
(USD)
$172.4m
Avg Maturity
5.64 yrs
Avg Duration
3.52 yrs

September 2020 / INVESTMENT INSIGHTS

US High Yield Bond – Introduction

US High Yield Bond – Introduction

US High Yield Bond – Introduction

A flexible approach that seeks to be a ‘fund for all seasons’

By Kevin Loome

Kevin Loome Portfolio Manager

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