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Investment Philosophy and Process

Philosophy

We view buying a bond as lending money to a company. We look for bonds for which the market is mispricing risk based on our rigorous bottom-up credit research. We constantly assess relative value and dynamically adjust portfolios as risk-return profiles change. Our goal is to compound attractive interest streams while avoiding defaults and credit impairments

This approach may sound simple, but in our experience, is not commonly adopted. Many investors do not view buying a bond as lending money to a company, but see it as buying a security for a short period of time in order to benefit from hoped for market appreciation. We call this “speculative lending.”

 

Process

Our process is designed around our value lending philosophy and is based on 5 principles:
  • Build a deep understanding of the business model of the companies we lend to: evaluate products, competitors, suppliers, and customers.
  • Conduct proprietary quantitative analysis and stress test our investment assumptions for difficult environments.
  • Carefully review credit contracts and covenants.
  • Evaluate company management.
  • Construct highly liquid portfolios using best ideas to achieve the appropriate risk-return characteristics at a portfolio level.




The Funds are offered to United States residents, and information on this site is intended only for such persons. Nothing on this website should be considered a solicitation to buy or an offer to sell shares of any Fund in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction.

Please refer to the Credit Opportunities Fund prospectus, the U.S. High Yield Corp Bond Fund prospectus and Low Duration Fund prospectus for important information about the investment company including objectives, risks, charges, and expenses. Read each of the Fund documents carefully before investing. You may also obtain a hard copy of the prospectus by calling 1-855-689-4642.

Mutual fund investing involves risk. Principal loss is possible. Investments in the fund include risks associated with debt securities, lower-rated and non-rated securities, foreign securities including emerging markets, derivatives, floating rate loans, turnover risk, leverage, securities with liquidity risk and investments in other funds or ETFs. Please refer to the prospectus for additional information about the risks of investing in the fund.

The Funds are distributed by Quasar Distributors, LLC.

 
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