The Goal of our Investment Strategy is to produce superior returns and cash flows
Incremental yield – the creation of an enduring yield advantage versus the benchmark
Sector judgments and specific security selection / avoidance
Maintaining a duration near benchmark
Diversification across yield curve and among holdings
Enhanced cash flow providing superior reinvestment opportunity over the long term
Sector Selection: Overweight corporate bonds and mortgages
Mortgage and corporate bonds have outperformed treasuries in 29 of the past 35 years
Table includes annual returns for corporate mortgage and U.S. Treasury Sectors of the Bloomberg Barclay’s U. S. Aggregate Bond Index. Source: Bloomberg Barclay’s Aggregate.
Investment Process: Top Down Theme Identification
Our process is centered around macro theme identification, which involves studying the global landscape for trends that will impact investment decisions
We actively discuss supply and demand fundamentals and
consider relative attractiveness of spreads among sectors
We are not beholden to benchmark sector weightings
With diverse backgrounds and experiences, each portfolio manager brings a different perspective of the investment world to the table
Years of observation and macro environment study are what we believe to be central to our long-term success and set Orleans Capital apart from its competition
Investment Process: Bottom Up Security Selection
Equity-like approach in evaluating securities for buy list and sell candidates
Analysis using street research, third party independent research, internal research discussed collectively
No emphasis on rating agencies in determining value
Early sellers of “red-flag” credit names to avoid credit risk
Fixed Income & Economic Macro
Macroeconomic Inputs
Capital Expenditures
Economic Growth
Monetary Policies
Sector Fundamentals
Identify the best sectors given our macro views
Select best-in-class bonds for chosen investment themes
