Our Time-tested Investment Process

Over Post's 30-year history we believe we have delivered attractive, risk-adjusted returns¹ and established ourselves as a respected active manager in sub-investment grade corporate credit. We focus on evaluating the qualitative — and not just the quantitative — aspects of each business that we underwrite.

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 positive outcome will often be limited to the return of principal and coupon, whereas their worst-case outcome is 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 when we view this distribution curve as narrower (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 issuer. 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 on-going 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.

Tailored 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.