Portfolio Construction

Portfolios are constructed with U.S. dollar-denominated securities. Primary consideration is given to out-of-favor sectors of the bond market. Dislocations between buyers and sellers often develop in the fixed income markets, resulting in large inefficiencies.  We are able to exploit these inefficiencies for your benefit by purchasing securities at a significant discount to their intrinsic value. Portfolio construction is based on a buy-and-hold strategy in which excess returns are generated by acting as the providers of liquidity.

Portfolio Characteristics

Inception DateFebruary 1, 2013
Assets Under Management (in millions)$170.30
Investment StyleCore - Specialized
Decision MakingOpportunistic
BenchmarkBarclays Capital U.S. Aggregate Bond Index

Portfolio Statistics as of 6/30/19

Strategic EnhancedBarclays Capital U.S. Aggregate Bond Index
Average Credit QualityA1Aa1
Duration6.5 yrs5.7 yrs
Current Yield3.7%3.1%
Number of Holdings8510610

Sector Diversification as of 6/30/19

Strategic EnhancedBarclays Capital U.S. Aggregate Bond Index
Government30.5040.50
Asset Backed12.100.50
Mortgage Backed42.7029.30
Corporate6.9029.00
Taxable Municipal0.300.70
Cash7.600.00