Focused Fixed Income Value Strategy

• Concentrated positions allow us to profit from the ability to assume prudent idiosyncratic risk
• Fundamental analytical approach seeks investment returns from both income and capital appreciation
• Unconstrained mandate provides flexibility to opportunistically modulate duration and credit quality

Allocation: Fixed Income

Strategy Description: The Focused Fixed Income Value Strategy is based on value-oriented investing principles that view debt securities as contractual claims on the cash flow and/or assets of an issuer. Securities included in the portfolio are often overlooked or undervalued by market participants for reasons we believe are temporary or unfounded. We seek to invest in debt instruments trading at a discount to par value and expect returns to be attributable to both price appreciation and periodic interest payments. Rigorous financial statement analysis underpins the investment research process and provides critical context to understand qualitative analytical considerations. Particular attention is paid to bond indentures, covenants, the interactions between obligations within an issuer’s larger debt capital structure, and cash flow and asset coverage ratios. US Treasury securities may be included in portfolios to provide additional income and exploit market mispricing of inflation and interest rate assumptions.

Portfolio Construction: Fully invested portfolios hold concentrated debt positions limited to corporate and US Treasury securities that may be investment-grade or non-investment-grade. Our investment horizon provides for each security to be held to maturity, if necessary, to realize its full price appreciation potential. The strategy does not target a specific duration. Trading occurs infrequently, and turnover is expected to be low.

Strategy Literature

Q2 2024 Fact Sheet

Q2 2024 Commentary

2023 GIPS Presentation