Investment Philosophy and Process

We believe the bond market is very efficient in discounting risk and return potential over time and in taking interest rate risk along the duration curve. This efficiency has made interest rate timing strategies very difficult for active bond managers to consistently get right and add value for their investors.

This is why our disciplined, risk-controlled investment approach starts with a duration-neutral discipline versus the market benchmark it is expected to outperform. We then seek to add incremental value through bottom-up yield curve positioning, sector allocation, security selection and competitive execution of trades. This philosophy is implemented strictly in the U.S. dollar-denominated, cash bond market without the use of derivatives or leverage.

Step 1:
Structure portfolio to achieve return of benchmark for each client:
Step 2:
Add incremental value through bottom-up, risk-controlled process: