OUR INVESTMENT PROCESS
We are active manager looking for investment opportunities around the world to generate extra return mainly from capital gain, which is the major source of our outperformance.
Our unconstrained approach allows us to adjust allocation among different industry sector and asset class including corporate bond, corporate hybrids convertible bonds, back capital debt, perpetual bond, CDS, interest future and equity index future.
Our short-sell trades on deteriorating credit not only generate good return on our portfolio but also reduce the overall price volatility of our bond portfolio.
Multi Strategies to enhance the return including event-driven trades, relative value credit rotation trades, special situation trade, or trades on market dislocation resulted from force selling and negative headline.
We constantly monitor the macro environment through the VIX index, the iTraxx crossover index, equity index, interest rate risk, and currency risk. With the ability to use derivatives, we are able to reduce the overall volatility of our portfolio enhancing our Sharpe ratio.
We conduct extensive credit research work on any bonds to be included in our portfolio. In addition, we have a 10-point loss rule to cut our positions, in case there are signals of credit deterioration. As a result, we have minimum default exposures which is a source of out-performance.