Common to all our investment strategies is our emphasis on understanding the companies we invest in, whether it is in equities or corporate bonds.
Returns in our funds are driven by stock and bond selection, and a thorough analysis of these companies is a key element to our investment philosophy. Our approach is fundamental and long-term.
When we buy bonds, we rely on a thorough analysis of the issuer’s financial situation, the value of any collateral and the various clauses in the loan agreement. This way we form a view of the risks as weighed against the risk premium the underlying bond is assumed to provide. This risk premium is the main source of return for funds with corporate bonds. We are not concerned with tactical dispositions or bets on the yield curve.
As one of the larger and more experienced investors in the Nordic high-yield bond market, we are able to negotiate favourable terms on bonds we invest in through the primary market. These processes also help the issuers to set more appropriate and market-based bond structures.