U.S. Opportunistic High Yield
Investment Process
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The strategy seeks to exploit inefficiencies in the middle market and lower-tier segments of the high yield market and has the flexibility to invest across the capital structure of an issuer. Bridgefield aims to identify mis-priced credit risk and construct a portfolio with a significant yield advantage relative to the applicable benchmark.
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Bottom-Up Fundamental Research
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Analyze entire company, not just an individual bond/loan tranche
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360-degree view of business – customers, suppliers, competitors
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Identify sustainable competitive advantages
Cash Flow
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Understand how a target company generates cash
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Assess durability and sustainability of cash flow​
Minimize Credit Losses
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Calculate and continuously monitor company’s total enterprise value
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Focus on loan-to-value and cash flow
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Only invest in securities with appropriate margin of safety
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ESG factors evaluated for each investment
Legal Protections
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Understand contractual protections in debt agreements
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Assess "waterfall of value" and downside scenarios​
Portfolio Construction
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Security selection drives performance
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No macro bets or themes
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Construct concentrated portfolios – overweight high confidence positions
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Flexibility to invest across the capital structure - bonds and bank loans
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Long-term investment horizon
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Limited exposure to stressed/distressed securities
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Monitor to provide for appropriate diversification and liquidity