Investment Process - Top Down Focus
- Economic Trends & Outlook
- Yield Curve Analysis
- Spread Analysis, selection based on undervalued bonds relative to overall debt markets, industries and individual company issues
- Diversification used to manage volatility
Find companies with recognizable brands, consistent streams of revenue & valuable assets.
Questions We Ask:
- Can operating cash flow or free cash flow be sustained?
- Is the revenue stream consistent?
- Do they have monetizable assets?
- How is working capital and liquidity managed?
- When are bank lines of credit and debt coming due?
- What is the annual interest expense?
- How will changing economic trends affect covenants?
- Is the risk worth the reward?
- In general, bonds are sold when:
- Valuation targets are achieved
- Changing economics affect the original reasons for investment
- The company exhibits deteriorating fundamentals
- More attractive alternatives exist
Free Cash Flow: Free Cash Flow is equal to the net income of a company plus depreciation and amortization less capital
Click here to view the prospectus.
The Funds are distributed by Foreside Distribution Services, LP.