The strategy seeks to outperform over a full market cycle by protecting principal in periods of market decline while providing a stable base of income across all periods.
Invests in higher-quality, less volatile segments
Top-down manages risk, and bottom-up builds a high quality diversified portfolio
24+ year track record with a focus on steady returns and principal protection
Consistent philosophy and low turnover among the research team
High Quality / Strategic
STYLE
Bloomberg Barclays U.S. Corporate High Yield
BENCHMARK
Jul. 1, 1994
INCEPTION
Philosophy
We believe that the most attractive risk-reward opportunity within the high yield market exists in the higher quality, less volatile segments. We believe that these segments can produce attractive absolute and relative returns, best achieved by:
Focusing on higher quality credits with lower default risk
Executing a consistent repeatable process
Emphasizing risk control via rigorous portfolio analysis, diversification/position limits, and proactive selling
Strategy Facts
As of 12/31/2018
Assets Under Management (AUM)
$3.9 billion
eVestment Universe
U.S. High Yield Fixed Income
Investment Vehicles
Separate Account Mutual Fund Also offered as a private fund
Portfolio Construction
Invests primarily in high yield bonds
Focus on higher quality credits exhibiting lower default risk and mature sectors
De-emphasize sectors with unfavorable risk-return relationships
Avoid purchasing securities rated CCC or below
Management
Garrick T. Bauer, CFA
Vice President, Portfolio Manager
Career Summary Wellington Management Company
Summit Investment Partners
PricewaterhouseCoopers
Education BS - Miami University
MBA - University of Virginia
