Insights

February 26, 2020
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J Paulo Silva
Portfolio Manager

Small Value Equity Primed to Soar

Small value equity is currently valued -31% below its 10-year average, while growth, momentum, low volatility, and other popular factors exceed the bubble valuation threshold of +30%. Small value equity is primed to soar as global interest rates normalize and valuation multiples revert back to long term levels, especially as the coronavirus epidemic appears to act as a market reversion catalyst.

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February 5, 2020

Top Ranked of 18,323 Indices

Short duration BB-B bonds continue to exhibit top ranked risk-return. To illustrate the extent of this anomaly, we’ve compared the ICE BofA BB-B 1-3Y index to every market index within the Morningstar Direct database.

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Peter Duffy
Portfolio Manager
January 8, 2020

Avoiding the Pain Trade

A pain trade appears imminent for investment grade bonds, where the market delivers the maximum amount of pain to the most investors of an extremely popular asset class.

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Eric Green
Portfolio Manager
December 16, 2019

Loan Alpha from Capacity Constraint

A loan fund’s size and investment opportunities are negatively correlated. This makes capacity constraint a key factor, allowing for high conviction focus on quality opportunities.

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David Jackson
Portfolio Manager
November 20, 2019

Short Duration's Trojan Horse

Short duration bonds have a Trojan horse. Long maturity bonds often masquerade as short duration. With a minor price change, a short duration bond with a long maturity can become long duration, revealing far more risk than originally indicated.

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Peter Duffy
Portfolio Manager
November 12, 2019

Equity's Credit Blindspot

Equity has a credit blind spot. 95% of Russell 3000 companies issue debt, 75% of which is sub-investment grade. Equity investors study stock price movements but often ignore credit market signals.

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Joe Maguire
Portfolio Manager
October 15, 2019

Smart Yield Still Exists

Smart yield still exists. Short duration BB-B corporate bonds are providing high yield, downside protection, and interest rate protection in an ultra-low yielding environment. Yet the bonds remain largely overlooked by the industry.

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Peter Duffy
Portfolio Manager