Fundamental Credit Opportunities:
FCO will seek to achieve its overall investment objectives and strategy by:
- 1) Targeting consistent total returns, employing:
- A best-in-class team with extensive municipal market experience, advanced product knowledge and substantial structuring capabilities
- An agnostic mandate without bias toward instrument type, tax-exemption, current yield, duration, callability or direction
- Active management for an absolute return by hedging, buying and selling (as opposed to the traditional passive, long and unhedged retail and fund investors).
- A liquid but patient, longer-term capital base to better match the opportunity set and mitigate risk.
- 2) Adhering to a rigorous risk management framework:
- Maintaining a diverse portfolio with respect to liquidity, credit quality, credit sector and geography.
- Deploying real-time, state-of-the-art risk reporting technologies to inform hedge and position risk vectors.
- Utilizing modest leverage, primarily in connection with the use of derivatives as opposed to yield enhancement.
- Reviewing the inputs and drivers to underlying investment theses and adapting to changing credit and market conditions.