Investment Objective
The portfolio managers seeks to capitalize on market inefficiencies and generate consistent, superior returns while reducing downside risk.
Benchmark
Bank of America Merrill Lynch All Convertibles Index
Investment Philosophy
The portfolio manager believes that he can capitalize on market inefficiencies by purchasing convertibles in the following situations:
- Common stock is attractive; an opportunity exists to gain additional income from owning the convertible
- Common stock is attractive; an opportunity exists to use the convertible to reduce downside risk substantially
- Convertible is undervalued on a fixed income basis; the equity upside potential is a cheap option
The portfolio manager believes that the best opportunities combine situations and portfolios that are structured on an individual basis. The portfolio manager also believes that consistent performance can be realized by managing risk on a portfolio and individual company basis.
Investment Process
- Macroeconomic Outlook
- Bottom-Up Security Analysis
- Portfolio Risk Management
- Review/Sell Process