Through our research expertise and trading acumen we seek to achieve best execution
on relative value opportunities rather than relying on interest rate forecasting to deliver excess return.
We propose a two - factor model to seek to collect an active return from security selection, identifying
relative value opportunity in credit returns while keeping portfolio duration and credit duration natural to the underlying universe.
Looking both within and outside of the benchmark, the Fund
seeks relative value opportunities across traditional investment - grade and high - yield bond sectors, also including nontraditional asset classes like non-U.S. sovereign and corporate debt, convertibles, and floating - rate loans.
Cory specializes in identifying
relative value opportunities within the structured finance sectors (e.g., RMBS, CMBS, ABS, and CLOs) as well as the structured sectors of the agency MBS market.
That scenario presented
a relative value opportunity because the market was pricing the convertible 300 basis points lower (3 %) than the equivalent duration straight debt.
Relative value opportunities are discussed and prioritized.