High Yield
Philosophy
The High Yield strategy invests in higher-quality segments of the high yield fixed income market. We believe this offers the best alignment of risk and return, which provides the most favorable opportunity to outperform over a full market cycle while maximizing risk-adjusted returns.
Process
Our process narrows the universe of available securities into a group of credits with attractive risk-return relationships. We de-emphasize sectors with unfavorable risk-return relationships and do not buy securities rated CCC or below. Credit selection is led by our seasoned portfolio manager and our specialized team of credit research analysts. The High Yield strategy's larger positions are generally composed of well-capitalized companies with proven business models and relatively strong credit ratings.
Objective
With a portfolio of higher-quality credits, the High Yield strategy seeks to outperform over a full market cycle by protecting principal in phases of market decline while providing a stable base of income across all periods. The team's goal is to reduce volatility by investing in credits with relatively lower default risks.
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Strategy Snapshot
- 15+ year track record
- Employs a disciplined and highly quantitative risk management framework
- Seeks to create value by the short-term allocation across sectors
- Utilizes specialist asset managers across the major fixed income sectors
Read Nick Sargen's current investment thoughts at his BLOG NickSargen.com