Opportunity
For accredited investors looking for preservation of capital with high yield, corporate bonds often provide a more reliable cash flow stream than dividends plus the security of the return of the invested capital at bond maturity. Bonds rank higher on the corporate capital structure and therefore have a stronger claim on the underlying assets of the company than preferred shares and common equity. Portfolio manager access to high yield bonds offers investors the ability to realize capital gains and a stable monthly yield from this inefficient market.
Strategy
We strive to maximize accredited investors’ total return with a combination of income and capital gains. Using complementary top-down and bottom-up processes, we develop key themes and assess market risk while performing in-depth fundamental analysis on sectors and individual securities. In-depth knowledge of the North American credit markets translates into attractive investing opportunities.
The Norrep advantage
Niche expertise: Hesperian’s investment management group excels at identifying undervalued securities with significant growth potential. Our track record has shown that favourable investment outcomes can be achieved through our proven and repeatable investment methodology.
Independent insight: Our investment management group has a deep roster of experienced professionals that allows the portfolio managers to objectively view an investment's merits in making informed decisions. We choose to know a lot about niches like high yield fixed income, rather than a little about everything.
Unique access to fixed income markets: Fund investors benefit from business relationships built over many years that keep the portfolio management team well informed on the state of the market for high yield securities and fixed income in general.
Focus and flexibility: We invest in securities with long-term growth potential and often hold our top ideas for long periods. Our suite of investment tools allows the portfolio manager to effectively manage risk in all environments.