Image of David Kim, Deputy Chief Investment Officer

Our investment team
is focused on delivering attractive risk-adjusted returns by undertaking a deep level of analysis in our research process — designed to assess not only the quantitative, but also the qualitative, aspects of each business. Additionally, how we organize our investment team is unique in the industry, and we believe this improves investment outcomes.

Our Time-tested Investment Process

Our 30-year history of delivering attractive, risk-adjusted returns¹ has made Post one of the leading active managers in sub-investment grade corporate credit. We invest in more substantive analysis as we underwrite and monitor investments, with a focus on evaluating the qualitative — and not just the quantitative — aspects of each business.

Sub-investment grade corporate credit is inherently an asset class with an asymmetric return profile: when buying a bond or loan at par, an investor's best-case outcome will generally be the return of principal and coupon, and the worst-case outcome a default with limited or no recovery. Accordingly, we prioritize assessing downside risks when evaluating credit opportunities.

Our Research Approach

Our research process is designed to assess not only a "base-case" outcome, but more importantly a view of the shape and skew of the potential outcomes. We prioritize those credit opportunities where we view this "distribution curve" as more narrow (i.e., less volatile), the "left tail" (downside) risk more limited, and the "right tail" (upside) optionality as better.

Our process typically involves conversations with management, competitors, suppliers, and experts in and around the industry, in order to assess the medium- and longer-term outlook for the business. We also look to understand the incentives and motivations of equity owners (both through engaging directly with them and through evaluating their historical actions), as these can be important in assessing credit risk. Monitoring this risk can be as important (and often more important) as the initial underwriting, and our process prioritizes continuous re-underwriting efforts, as investment theses can change and evolve.

While we believe our research process is the most important driver of alpha, we also understand the importance of applying a top-down lens as it relates to portfolio construction. This top-down overlay, informed by our portfolio management team's views on the market and macro environment, allows us to tactically position portfolios in different kinds of markets.

¹Past performance is not indicative of future results.

Customized Portfolios to Meet Specific Objectives

We construct portfolios according to the investment objectives of our clients. Depending on each client's appetite for credit, market, and duration risk, we offer a range of investment strategies (within which we can tailor guidelines to our clients' specifications and unique needs):