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Structured Opportunities Strategy

The strategy emphasizes moderate to higher risk opportunities within securitized products. Management employs a fundamental, relative-value approach that seeks alpha by strategically allocating between two sources: sector allocation and security selection. A focus on non-index sectors typically provides for more stable duration and higher yield than traditional MBS-oriented strategies. Management favors longer holding periods, which can enable the realization of the yield advantage over the benchmark.

  • Focus on moderate to higher risk/return opportunities within securitized products
  • High spread/short spread duration focus reduces volatility
  • Longer holding periods enable realization of yield advantage 
Securitized Fixed Income
STYLE
Bloomberg U.S. Mortgage Backed Securities Index
BENCHMARK
Oct. 1, 2011
INCEPTION

Philosophy

We believe Securitized products offer a superior risk/return profile versus competing fixed income assets. Securitized products tend to have complex structures and uncertain cash flows, offering potential for inefficient markets and attractive risk-adjusted returns. Strong front-end due diligence and back-end surveillance processes are necessary to navigate markets and manage risk. Sector complexity fosters a smaller yet sophisticated investor base, resulting in a favorable market dynamic and volatility profile over time. Emphasizing the income component of return and focusing on high spread/shorter spread duration securities supports fundamental investing with a longer-term horizon.

Portfolio Construction

  • Emphasize non-index securities
  • Invest across capital structure with emphasis on higher yielding opportunities
  • Emphasize risk premium relative to default risk
  • Model securities using proprietary and industry standard resources
  • Number of issues: Typically 50-100
  • Duration: Typically Benchmark +/- 2.0 years
  • Below IG: Typically <25%
  • Non-U.S.: Typically <5%

Strategy Facts

As of 3/31/2022
 Assets Under Management
$2.0 billion
 eVestment Universe U.S. Securitized Fixed Income - Non-Traditional
 Investment Vehicles Separate Account

Management

Scott Weston

Scott D. Weston

Managing Director, Senior Portfolio Manager

Career Summary
Countrywide Investments
Midwest Group of Funds

Education 
BA - University of Utah
MBA - University of Cincinnati

Meet Scott Weston
Brent Miller

Brent A. Miller, CFA

Vice President, Senior Portfolio Manager Structured Products

Career Summary
Integrity Companies

Education 
BS - University of Evansville

Meet Brent Miller

Richard V. Schneider

Vice President, Senior Portfolio Manager Structured Products

Career Summary
Mesirow Financial
Loop Capital Markets
Lehman Brothers Asset Management
Lincoln Capital Management

Education 
BS - University of Notre Dame
MBA - University of Notre Dame

Meet Richard Schneider

Related Insights

IMPORTANT DISCLOSURES
Past performance is not indicative of future results.