We believe that macroeconomic conditions drive asset prices and central banks use interest rates to manage macroeconomic conditions. We apply this logic systematically and seek to build a portfolio hedged to changes in the economy by balancing investment exposure between instruments we expect to outperform in rising and falling macroeconomic conditions.
Our investment approach is supported by a comprehensive research process that tests logic rigorously using empirical data across potential market conditions and macroeconomic outcomes. This logic is then applied systematically, seeking to minimize risk and maximize efficiency through active portfolio management.
We are disciplined in our approach and transparent with its results, as we strive to deliver the best balance of risk and return for the financial future of our clients.
We create four distinct sub-portfolios that we expect to outperform in different economic environments and equally risk-weight these to limit directional exposure.
Through this balance, we aim to be prepared for whatever economic environment comes next.
In the next phase of our process, we analyze proprietary datasets of fixed income markets and build predictive signals based on factors of value, carry and momentum.
These drive active positioning within each sub-portfolio and help create diversified active return streams while limiting additional risks.
We aim to identify market exposures that offer excess returns by utilizing broader and deeper sets of data than what had been available in the previous era of markets.
Our systematic approach is designed to offer a consistent and efficient framework for fundamental investment ideas across the broad universe of markets.
We aim to avoid idiosyncratic risks in order to effectively manage downside while utilizing a wider lens across markets to identify potential excess returns.
Our strategy is designed to maintain a liquid profile through market turbulence and use active measures to reduce risk while capitalizing on dislocations.
