Fundamental Credit Opportunities

Fundamental Credit Opportunities (“FCO”) capitalizes on the lasting and recurring inefficiencies across the municipal markets and government finance. Investment themes cut across the entire spectrum of the municipal market, from liquid relative value to idiosyncratic credit to highly structured and distressed investments. The strategy focuses on developing concentrated convictions in asymmetric return profiles while minimizing correlations and drawdown risks.

To execute on this strategy, FCO combines a team of experienced professionals with decades of demonstrated expertise in sourcing, analyzing, structuring and executing across a range of product types. FCO employs an agnostic, unbiased investment mandate within the municipal securities market and a sophisticated, rigorous investment process.

Investment Objectives

Targeting consistent absolute returns

  • An experienced team with extensive municipal market and advanced product knowledge, and substantial structuring capabilities

  • Employing an agnostic mandate without bias toward instrument type, structure, tax-exemption, duration or market direction

  • Partnering with a liquid but patient, longer-term capital base to better match the opportunity set and mitigate risks

Adhering to a rigorous risk management framework

  • Utilizing disciplined portfolio management focused on investment conviction, liquidity and drawdown risk
  • Deploying real-time, customized risk reporting technologies to inform hedge and position risk vectors
  • Constantly reviewing the inputs and drivers of underlying investment theses to adapt to changing credit and market conditions

Strategy & Investment Process

FCO selects investments from a diverse range of opportunities that offer scalable, asymmetric and uncorrelated returns.  The strategy employs an adaptive investment process, reflecting a few key considerations in addition to liquidity and credit quality.

 

Key Considerations

  • Fundamental
    Evaluation
  • Structural
    Factors
  • Technical
    Conditions

Portfolio Construction

  • Idiosyncratic
  • Technical
  • Distressed
  • Structural

Return Stream

  • Absolute
    Total Return
  • Modest
    Volatility
  • Low
    Correlation