Greenwood Capital uses a disciplined approach in the management of fixed income portfolios. It is our belief that an active strategy of utilizing controlled duration management, yield curve positioning, sector rotation, and credit selection provides competitive returns to passive strategies over longer-term investment horizons.
Our process begins with our Investment Committee, bringing together a diverse group of investment professionals from other market sectors that analyze macroeconomic factors, including interest rate outlook, economic environment, regulatory setting, and liquidity conditions. Based on these factors, duration targets are chosen along with an analysis of positioning along the yield curve. The next step involves relative value analysis of fixed income sectors, with special attention to the corporate bond sector. Quantitative and technical analyses support the process of seeking undervalued subsectors. Finally, bottom-up fundamental analysis, as well as seeking price inefficiencies of individual companies complete the construction of the portfolios. Importantly, risk management controls are employed along the process to ensure compliance to their objectives.