We believe that a relative value approach across traditional and alternative markets, combined with always having liquidity at the ready, gives fixed income investors the ability to generate returns through a variety of bond regimes.
Unlike traditional bond funds, the Strategic Income Opportunities strategy can invest flexibly across various fixed income securities, enabling it to take advantage of the best opportunities in the prevailing market environment, wherever they are found.
Our opportunistic approach emphasizes investment management strategies and risk management techniques from both traditional and alternative
asset management. Traditional fixed income funds may have high sensitivity to changes in interest rates. The Strategic Income Opportunities strategy seeks to reduce this sensitivity by pursuing a wider range of investment avenues for the generation of returns.
The investment team employs a disciplined investment process to construct and maintain a well-balanced portfolio, drawing on both qualitative and quantitative inputs.
The portfolio is constructed around types of trades: beta, alpha, and hedges:
Beta is the return we expect to earn by choosing the sectors within fixed income where we expect to see a broad-based move. Beta returns involve relying on a market to “carry” a strategy.
Alpha strategies are those that do not rely on the broad-based behavior of a sector. They are specific, carefully tailored trades, intended to work regardless of market directionality.
Hedging we approach hedging on a systematic basis. As an absolute-return focused investor, we are not content with positioning portfolios for a base case scenario only. We are in relentless pursuit of hedges against a variety of tail risks to that base case.