Objective: Income and Capital Appreciation
Investment Philosophy: The Focused Fixed Income Value Strategy is based on value-oriented investing principles that seek securities trading at a discount to appraised value for reasons that are temporary in nature. In corporate debt markets, such mispricing is often attributed to factors such as misunderstood fundamental financial characteristics or a change in an issuer’s credit rating. We place particular emphasis on rigorous financial statement analysis both before and throughout our investment ownership period, and are willing to assume an “operational activist” role with issuers if necessary to create long-term value. 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. Trading occurs infrequently, and turnover is expected to be low.
Q3 2020 Portfolio Commentary