Fixed Income Management

Bonds Should Represent the Most Stable Asset Class

Orleans Capital’s fixed income philosophy is premised upon the belief that bonds should represent the most stable asset class in a fund’s overall portfolio, providing predictable cash flow to meet clients’ long-term obligations. Our fixed income strategy seeks to add value through sector and security selection designed to create an enduring yield advantage over the applicable benchmark without a material variation in quality, convexity or other portfolio characteristics. The firm’s fundamental fixed income discipline has not changed since its inception, nor do we anticipate a change in the investment policy in the near term.

Municipal Bond Management

Our Municipal bond strategy offers a compelling investment opportunity for clients seeking to generate stable, tax-advantaged income. Our strategy involves creating a laddered, diversified portfolio of high-quality tax-exempt securities aimed at asset preservation and enhanced income. Building a bond ladder helps manage interest rate risk and liquidity needs, aligning with our clients’ investment horizons and cash flow requirements.

Generating Fixed Income Returns

In general, Orleans Capital overweights the corporate and mortgage sectors of the fixed income market and underweights the Treasury sector. This strategy is based upon the historical outperformance of corporate and mortgage bonds versus their Treasury counterparts.

Orleans Capital Utilizes a Team Approach

Orleans Capital utilizes a team approach to fixed income asset management. As a result, all fixed income portfolio managers participate in investment decisions. The Fixed Income Team is responsible for all aspects of portfolio management from general issues such as portfolio strategy to specific decisions such as individual security selection.

Top-Down Evaluation of the Macroeconomic Environment

The Fixed Income Team meets on an ongoing basis to discuss market events and monitor economic data bearing on investment strategy. We begin with a top-down evaluation of the macroeconomic environment and an assessment of any changes in market conditions. Consideration is also given to supply and demand factors affecting the future performance of various industries and sectors. This analysis leads to the setting of industry, duration, sector and coupon targets. Using sophisticated computer software modeling we then compare the structure of individual portfolios to the target and analysis is performed to determine the most efficient transactions necessary to optimize portfolio structure.