U.S. Opportunistic High Yield

Investment Process

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.

Bottom-Up Fundamental Research

  • Analyze entire company, not just an individual bond/loan tranche

  • 360-degree view of business – customers, suppliers, competitors

  • Identify sustainable competitive advantages

 

Cash Flow

  • Understand how a target company generates cash

  • Assess durability and sustainability of cash flow​

 

Minimize Credit Losses

  • Calculate and continuously monitor company’s total enterprise value

  • Focus on loan-to-value and cash flow

  • Only invest in securities with appropriate margin of safety

  • ESG factors evaluated for each investment

 

Legal Protections

  • Understand contractual protections in debt agreements

  • Assess "waterfall of value" and downside scenarios​

 

Portfolio Construction

  • Security selection drives performance

  • No macro bets or themes

  • Construct concentrated portfolios – overweight high confidence positions

  • Flexibility to invest across the capital structure - bonds and bank loans

  • Long-term investment horizon

  • Limited exposure to stressed/distressed securities

  • Monitor to provide for appropriate diversification and liquidity