Long-term fundamental value
Markets often misprice securities. Prices deviate from fundamental fair value, but over time, they adjust to reflect inflation, credit quality fundamentals and liquidity conditions. Consistently investing in undervalued securities can deliver superior investment returns.We can systematically identify mispricings. We believe we can identify and capitalize on markets and securities that are priced below fundamental fair value. We do this through disciplined and rigorous analysis, comparing prices to the fundamental fair values estimated by our macroeconomic and credit research teams around the globe.
Our portfolios emphasize our highest convictions. The greater the difference between our view of fair value and markets' pricing, the bigger the potential value opportunity. The greater the degree of confidence in our view of fundamentals, the greater the emphasis of the strategies in our portfolios.
Multiple diversified strategies
We seek diversified sources of returns. Our objective is to meet or exceed our investors' performance objectives within their tolerances for risk. We seek to diversify investments and add value across interest rate duration, yield curve, sector allocation, security selection, country and currency strategies. We deploy multiple diversified strategies that benefit in different environments so no one strategy dominates performance, helping to dampen volatility.