High Yield

Strategy & Objective

Strategy Description
Asset valuation is the foundation of our High Yield strategy. Our goal is to invest in companies with rich asset support, thereby reducing our exposure to the damaging effects of high defaults and low recoveries. We have a preference for securities with more senior structures, such as senior or secured bonds versus subordinated bonds. We believe our “avoid the losers” mentality and focus on true asset valuations should result in superior risk-adjusted performance over time. We’re committed to limiting assets under management to ensure that we can continue to leverage our research expertise in small-cap credits and “fallen angels.”
 

What to Expect

  • Target 125 thoroughly-researched high yield credits
  • Fallen angel and small cap credit focus
  • Low defaults and high recoveries
  • Opportunistic exposure to bank loans, convertible bonds, and preferred stock

Read more about the high yield strategy

STRATEGY INFORMATION

As of 9/30/2014

Asset Class High Yield
Style Benchmark BofA Merrill Lynch
BB-B US High Yield
Constrained
Broad Benchmark BofA Merrill Lynch
US High Yield
Strategy Assets (millions) $2,134
Number of Active Issuers Target 100 - 125
Status Open to new investors




Investment Team
We employ a team approach to investing. As such, our clients benefit from the input and contribution of every member of our 20-person investment team. In addition to our Portfolio Coordinators, our sector teams play an important role in determining the positioning of your investment strategy.