Different
market
cycles
provide unique investment opportunities to identify undervalued
securities for our clients’ portfolios.Additionally,
those cycles demand relative value
decision-making, with
regards to sector, the yield curve and maturity management.We
will diligently scour the investment grade fixed income universe to
identify
attractive investments for our clients while maintaining high quality
diversified portfolios which is the hallmark of our investment process.
All portfolios are managed on a
team basis,
with our best strategies implemented in all accounts.Accounts with the same benchmark are
similarly structured.
Sector
Management We
evaluate
relative value opportunities among the different fixed income sectors
and
determine which sector(s) have the greatest long term potential for
superior
performance.Our emphasis is then
concentrated on selecting the best securities within these sectors.In general, we will always own shorter
maturity corporate, mortgage-backed or asset-backed securities because
we
believe that these securities are most often mispriced by the markets.For longer maturity bonds, we assess relative
value by closely monitoring the breakeven yield spreads relative to
U.S.
Treasuries yields in the context of economic conditions and historical
yield
spreads.
Diversification and Research
Our portfolio
managers are directly involved in research and trading.We do our own research and evaluations on
individual securities actively monitoring all holdings in our
portfolios. Each security is evaluated
always looking for
a “margin of safety” under various economic conditions.While we choose our credits carefully, we
also strongly believe in diversifying the credit risk in our portfolios
and
limit both the percent and duration contribution risk of each credit.