Active Duration Bonds

Top Reasons for Choosing Addenda Capital to Manage your Active Duration Bonds

• We have industry leading macroeconomic analysis capabilities. 
• We see duration everywhere in the bond market, as interest rate volatility is a significant source of alpha.
• We add value by leveraging changes in yields and the yield curve, spread management and security selection.
• Our contrarian approach to interest rate management reduces total return volatility and prevents us from falling into the comfort of the consensus.

We believe that:

• Growth and inflation are connected to the interest rate environment.
• Interest rate changes are a key driver of bond returns and return volatility.
• A dynamic and disciplined multi-strategy approach supplemented by sound risk calibration, is key to achieving consistent, above-average returns.
• Investing outside traditional benchmarks results in a greater likelihood of constructing optimal bond portfolios.

• Extensive fundamental analysis

Interest rate and credit spread forecasts are generated for numerous economic scenarios as a result of thorough macroeconomic analysis.

• Optimal positioning of portfolio

Interest rate scenarios are combined with our risk-calibration process to position the portfolio optimally relative to the benchmark for a given alpha target.

• Thorough top-down and bottom-up analysis

Disciplined top-down analysis is used to define our strategic allocation to credit, while bottom-up analysis is combined with continuous valuation and liquidity assessments to determine which securities and issuers in the investible universe are the most attractive.

• Rigorous risk management

Proprietary models and risk tools are used to closely manage and monitor overall portfolio risk, liquidity and credit quality.