Our top-down outlook is determined by our Investment Committee. The Committee is comprised of senior investment professionals who bring a diversity of views to our outlook from the perspectives of their roles in portfolio management and analysis, research and trading.
Most investors are uncomfortable being 100 percent invested in equities or other higher risk assets. They want a counterbalance with a reliable source of income and capital.
Traditionally, an investment grade bond portfolio had served such a purpose, but the three-decade fixed income bull market, which produced equity-like returns for more-aggressive fixed income strategies, overshadowed the fundamental case for bonds.
While Breckinridge is opportunistic in security selection and portfolio structure, we are grounded in principal preservation. We seek to generate fixed income returns that counterbalance riskier assets in periods of economic distress and uncertainty – as this is when fixed income returns typically matter most to investors. Our goal is to strike the right balance between risk and return, without overreaching for yield.
Stretching too far for yield increases the likelihood that portfolios will correlate with higher risk assets. The global financial crisis was a trenchant example of a period in which excessive risk-taking proved disadvantageous for many investors. When the financial crisis roiled markets in 2008 many investment grade fixed income strategies foundered, as risks that had been considered unlikely or insignificant proved damaging. By contrast, our steadfast adherence to an investment grade mandate and capital preservation proved beneficial.
Our mission is to provide the highest caliber of fixed income management. We believe that having this as our only investment mandate strengthens our capabilities in research, trading and portfolio management.