Fixed Income Investment Principles

We are value investors: We believe prices often overshoot fundamentals, and we seek to take advantage of mispricing created by short-term volatility.

We invest with a margin of safety:  Mispricing gives us the opportunity to purchase investments at discounted valuations, i.e. an added margin of safety. When attractive valuations are not available, we maintain cash, Treasury, or other liquid reserves.

We aim to preserve capital through independent research: We are committed to deep fundamental research and we have made it a foundation of our investment process. We commit capital only to durable, transparent, well-managed and appropriately structured investments.

We take a long-term approach: In some cases, the market will not recognize the additional value in a bond prior to maturity.  Therefore, we invest with a long-term approach, applying discipline, patience, and an ownership perspective.

We let value opportunities drive portfolio construction: Our security selection and sector weightings build “bottom-up” from the depth and availability of attractively priced opportunities, not “top-down” from benchmarks, ratings, or macro-thematic views.

We foster a culture of transparency, process discipline, and open debate: We believe these principles, lead to greater objectivity and better decisions.