Muzinich seeks to take advantage of enhanced return and hedging opportunities primarily in the US, and opportunistically in other corporate debt markets globally. We believe that in addition to harvesting attractive income flows from high yielding bonds, the corporate debt market offers investment opportunities that arise from the fact that bond prices do not necessarily reflect the fundamental value of a given issuer. This may be due to market distortions and inefficiencies and sometimes a lack of sophisticated credit modeling and analytical capabilities on the part of investors.
Long Short Credit
The Long Short Credit strategy seeks to generate consistent attractive returns on a risk-adjusted basis by over a three to five year period. The strategy targets a dynamic portfolio of investments directly and indirectly (through derivatives), primarily in high yield bonds. These bonds are priced mainly in US Dollars and issued primarily by US and European companies. The long short credit strategy seeks to achieve a high single digit per annum average return over a full market cycle, with controlled volatility.
Launch of strategy: June 2004
Global Tactical Credit
Global Tactical Credit (GTC) is an absolute return strategy that seeks to identify the best investment opportunities within the global corporate credit markets. GTC will invest in investment grade, high yield and senior loans across the US, Europe and Emerging Markets. Overall portfolio duration and spread volatility are managed with a macro derivative overlay when appropriate in the judgment of the portfolio management team. The strategy seeks to achieve returns of Libor plus 500 basis points over the course of a complete credit cycle, with portfolio volatility of 4-5%.
Launch of strategy: April 2013