Post's investment approach is focused on identifying high-quality businesses in attractive industries with lower risk characteristics relative to other issuers — attributes we believe should result in attractive long-term, risk-adjusted performance.
Investment Philosophy
Our process combines rigorous bottom-up fundamental credit research and analysis with an emphasis on downside risk mitigation. We augment our bottom-up credit research process with a top-down macro and technical overlay to enhance risk management with a goal of positioning our portfolios to achieve attractive relative and absolute performance through market and macroeconomic cycles.
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.
- INVESTMENT PHILOSOPHY:
Our investment philosophy is focused on the avoidance of defaults and capital impairment, which we believe should result in attractive risk-adjusted performance and lower volatility relative to market benchmarks. - CREDIT SELECTION:
The foundation of our investment approach is based on extensive bottom-up fundamental credit research and analysis, focused not only on quantitative but also qualitative factors. - MACRO AND TECHNICAL OVERLAY:
We augment our bottom-up fundamental credit research with a top-down macro and technical overlay to assess relative and absolute value and strategically position our portfolios through macroeconomic and market cycles. - CATALYST IDENTIFICATION:
We conduct thoughtful analysis of potential catalysts in conjunction with disciplined pricing of negative event risk and positive optionality to help evaluate relative and absolute value and manage risk. - POSITION SIGNING:
We proactively and opportunistically scale in and out of positions to maximize value and right-size positions based on market conditions and liquidity considerations.