Core Plus

Strategy’s Best Use:

Investors seeking a diversified portfolio of bonds and other fixed-income securities. Typical duration is 2-8 years with minimum 25% investment grade securities and maximum 35% below investment grade.

Portfolio Construction:

Portfolios are built through a proprietary, research-driven approach. Our bottom-up research produces the credit approved list, a list of securities with risk-adjusted return estimates. Allocations are based on the highest risk-adjusted return estimates with minimal reliance on short-term macro forecasting. We make opportunistic adjustments such as calibrating curve and duration abnormalities in extraordinary rate environments, integrating historical valuation percentiles by asset class and credit, and ensuring relative attractiveness of each investment to incorporate historical affordability of broader exposures. We allocate flexibly to high-conviction ideas within sector allocation guidelines.

A Value Approach at Its Core:

Intrinsic value to debt is one of our most important inputs to credit valuation. We believe traditional credit analysis often fails to incorporate the total intrinsic value of a business. We seek to invest in opportunities where the credit spread trades at an approximate discount of 30% to our estimate of intrinsic value, and with credit valuation and default risk that don’t reflect the true business value of a company.

What to Expect as a Client:

You can expect to receive the highest level of care from our experienced and responsive client services team regardless of the size of the portfolio you entrust with us.