Structured Credit Value
Our Structured Credit Value Strategy provides investors exposure to the structured credit markets through an active value investment process.
This strategy is managed by Orange Investment Advisors and is available as a mutual fund through Easterly Funds or separate account through Easterly Asset Management.
Objective
Aims to provide a high level of income and capital appreciation with a low volatility profile and little sensitivity to changes in credit spreads and interest rates
Portfolio Managers
The Structured Credit Value Strategy is managed by CIO and PM Jay Menozzi, who has over 30 years’ experience managing securitized fixed income products.
Benefits
Active Value
Aims to buy bonds below their intrinsic value, so latent value accrues to the portfolio over time
Absolute Return
Designed to consistently outperform benchmarks and peers when the market is unfavorable, while keeping up when the market is favorable
Why Structured Credit Value?
Yield: Offers excellent income opportunities, comparable to high-yield bonds with less duration risk.
Market inefficiency: Non-index sectors are generally more inefficient since they are not subject to the persistent, price-insensitive demand of passive investors, which enhances the opportunity in the secondary trading markets.
Diversification: The asset class has low correlation to other fixed income asset classes due to its lack of overlap and exposure to different risk factors such as consumer credit vs. corporate credit.
Lack of ETF options: Structured credit is a sector generally not included in fixed income indices due to its diversity and analytical complexity and is therefore not available in a standalone ETF vehicle.
For more information on this strategy, pleasecontact us.
For questions or inquiries, contact us.
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