US High Yield Bond: What makes us different?
Some key competitive differentiators
Key competitive differentiators for our team and our strategy over the years have been a couple of things.
Mostly, the experience level of the team members is high relative to most of the people we compete against.
The focus of the strategy is very important. So our team is spending 100% of our time focusing on the high yield bond market. We run a very focused strategy in the sense that it’s very concentrated. I think that’s been a very good differentiator for us over the years. If people ask how we’ve generated alpha, it’s definitely from concentrated credit selection.
We don’t pigeonhole ourselves in one part of the credit spectrum, one geography, one type of asset; we don’t screen companies and exclude half the universe based on some screening mechanism; our philosophy is to embrace the entire opportunity set, thereby kind of maximising the sources of alpha that we can use in this strategy.
And I think because of that focus and that concentration and that experience level we’ve been able to navigate some of the harder parts of the credit cycle while at the same time adding value by bottom up credit selection.
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