Absolute Return

Top Reasons for Choosing Addenda Capital to Manage your Absolute Return Bonds

• We offer a distinctive product based on its liquidity and non-correlated returns to traditional assets.
• We look to create value by capitalizing on short- and medium-term discrepancies within the bond market, irrespective of underlying market movements.
• We seek alpha by exploiting market volatility and relative value opportunities, while limiting exposure to corporate credit.
• We bring together transparency, maximum flexibility, healthy liquidity, compliance, diligent risk mitigation, market expertise and competitive fees.

We believe that:

• A consistent stream of alpha is achievable through numerous diversified investment strategies within a robust risk management framework.

• Rigorous quantitative and qualitative analysis is required to build a portfolio (consisting primarily of cash bonds and derivatives) that delivers positive returns in all market environments.

Our investment process is based on a global macro approach. We look at economic data, market flow and global analysis to assess what’s happening in the marketplace.

• Tactical and strategic positioning encompassing five sources of added value: market volatility, relative value of major foreign government bonds, currencies, provincial trading and corporate credit.

• Extensive top-down analysis of macroeconomic/industry data and sentiment variables allows us to identify investment opportunities related to market volatility and their relative value. Opportunities in relation to corporate bonds, albeit restricted, are exploited via bottom-up assessments.
• Portfolio construction reflects investment opportunities shared by a diverse team of specialists and allocated according to curve analysis, relative value metrics and sentiment. Various risk metrics are assessed and monitored, ensuring that no position or market exposure dominates the portfolio’s total risk at any point in time.