We build our portfolios through rigorous core credit analysis and active portfolio management. Our investment professionals screen individual opportunities using a fundamental approach that emphasizes quantitative and qualitative analysis. We seek broad diversification across industries and issuers in an attempt to limit downside risk.
Multi-Sector Investment Process Overview
Newfleet's suite of Multi-Sector Strategies vary by investment objective, exposure to below investment grade and non-U.S. securities, and duration. The strategies are managed by a single team and share a consistent philosophy and a process that is actively managed, relative value-driven, research intensive, and opportunistic. A focus beyond core sectors seeks to add value.
Sectors
Top Down Identification of Sector Relative Value Opportunities
Securities
Bottom Up Identification of Security Relative Value Opportunities
Portfolio
Continuous Multi-Dimensional Risk Management throughout the Investment Process
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Macro Overview
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Sector Evaluation
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Sector Comparison
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Sector Allocation
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Investable Universe
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Fundamental/ Structure Analysis
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Investment Ideas
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Risk Assessment
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Management Team
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Trading
Portfolio
Bank Loans Investment Process Overview
The Newfleet Bank Loans Strategy is founded on the belief that downside risk can be limited, and thus losses avoided, through two complementary approaches: rigorous credit analysis and active portfolio management. Investment opportunities are carefully screened to identify “best in class” companies with leading market share, superior cash flow, and an appropriate capital structure. Combining this with active management that emphasizes broad diversification across both industry and individual securities generates a portfolio that offers broad, diversified loan market exposure centered on loss avoidance and adequate liquidity.
Rigorous Core Credit Analysis
Active Portfolio Management
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Fundamental Approach— qualitative and quantitative
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"Best in Class" Companies— competitive advantage, stable cash flow, bias to deleverage
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Appropriate Capital Structure
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Broad Diversification; Exposure Limits
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Fundamental/ Structure Analysis
Portfolio
High Yield Investment Process Overview
The Newfleet High Yield Strategy seeks to generate both high current income and capital growth by investing in high yield fixed income securities, selected according to a series of issue-specific, sector, and opportunistic factors. A disciplined, time-tested investment process, coupled with opportunistic trading, strives to take advantage of mispricings, market dislocations, and other special situations.
Top Down Sector and Industry Analysis
Intensive Credit Research
Portfolio Construction and Opportunistic Trading
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Identify attractive industries/ themes/ risk appetite
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Industry analysis
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Industry themes
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Risk appetite driven by credit cycle phase; technical/ liquidity
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Perform extensive credit and company analysis
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Fundamental analysis of: credit risk; company management; issue structure; technical market conditions; focus on valuations
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Identify bond characteristics/ structures
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Overweight industries/ issuers with best relative value while maintaining diversification
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Select investment grade and bank loan investments capture valuation dislocations versus high yield
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Dedicated trader leverages mispricings, market dislocations, and special situations