Investment Approach

Income Generation

Our Philosophy

Our philosophy and approach to the high yield market is anchored in the belief that a disciplined research-driven approach focused on asset valuation and coverage will minimize default losses and generate superior risk-adjusted returns.

Our comprehensive credit analysis is designed to:

  • Exploit proprietary research in small and mid-cap credits
  • Capitalize on our valuation expertise in fallen angels
  • Concentrate on the senior portion of the capital structure

Our Investment Culture

Our goal is to generate excess returns through a disciplined, research-intensive, fundamental approach to value investing. Our experienced team has worked together for over a decade in an environment of high communication, collaboration and trust. A culture based on teamwork and intensive research creates an environment where ideas are rigorously challenged and thoroughly debated.

VALUATION

and independent analysis are the core of our approach

Our Investment Team

We have built a team of individuals with a passion for investing and a unique combination of analytical ability, creativity, experience, and discipline. Most are equity owners of our firm. We believe that our clients benefit from working with seasoned, skilled professionals whose interests are aligned with their own.

  • Analytical Ability
  • Creativity
  • Experience
  • Discipline

Our Investment Process

With fundamental research as our foundation, we encourage intensive, creative thinking at all levels and stages of our process. Our team of experienced industry analysts leverage their asset valuation expertise and contacts across industries to identify credits with improving characteristics, backed by skilled, ethical management teams. Our portfolio managers focus on valuation and structural characteristics, considering macro drivers, ESG factors, liquidity, volatility, and diversification to balance risk and reward considerations.

Find

Analysts

  • Review screens
  • Leverage H&W analyst networks
  • Discuss ideas with team

Analyze

Analysts

  • Investigate industry
  • Analyze company and competitors
  • Assess quality, risk and ESG considerations

Test

Sector Teams

  • Undertake initial peer review
  • Challenge thesis and assumptions
  • Evaluate opposing views

Build and Manage

Portfolio Managers

  • Assume final responsibility for target portfolio
  • Integrate new information from team
  • Continually review with analysts and sector teams

Our Risk Management

Active evaluation of risk is integral to our research process and portfolio construction. Our detailed assessment of security risk incorporates many factors including cash flow, asset coverage, leverage, capital structure, covenant structure, liquidity, competitive position, management, industry strength and position, and financial flexibility.  These factors provide insight as we assess management and competitive strength which can influence the total return of a security.

We look to build portfolios balancing conviction, diversification, internal risk classification, and liquidity profile.

Active

assessment of risk is integral to our research process