Fixed Income Management
Management Process
Our fixed income management team combines years of experience with extensive research capabilities. Our President and portfolio manager, John T. Mitchell, has been trading in the government bond market for over 30 years. Margie Burke, also a portfolio manager, utilizes the industry's leading fixed income analytical software from Interactive Data known as "BondEdge" to perform resaerch on the bond market. Together, Mr. Mitchell and Ms. Burke have developed a fixed income strategy that has managed to beat its relevant index while significantly reducing risk within our client's portfolios.
What sets us apart
Our investment style would best be described as duration managers. When we manage a core government mandate, we first evaluate the composition and duration of the index we want to measure. (It is often a blended index of treasury, agency and government mortgage backed securities.) A portfolio is constructed to mimic the composition. Then, using our extensive experience and research skills, we determine if we can exceed the index returns by either being short or long the duration or by introducing non-correlated assets like Treasury Inflation Protection Securities (TIPS). For example, if we believe rates will rise, we like to be short of the index. Conversely, we will remain longer than the index if we think rates may fall. The use of these non-correlated assets is one strategy that may add more value than a traditional fixed income management approach.
Some fixed income managers simply purchase and hold fixed income investments to maturity. This method may potentially miss important market movement that can be beneficial to fund returns. We monitor every fixed income holding daily and are not afraid to make necessary changes to the portfolio.