Process
As an active investment manager, StableRiver Capital Management employs a dynamic, multi-faceted investment process. Our experienced investment team utilizes duration management, yield curve positioning, sector rotation and security selection to achieve an optimal balance of risk and return. We believe that competitive returns can be achieved through our balanced multi-faceted process without excessive emphasis on any one facet. We are confident that StableRiver's experienced investment professionals using our investment management process will achieve superior and dependable investment returns for our clients over time.
1 Duration Management
We review domestic and global economic data in addition to expectations of Federal Reserve policy to develop our perspective for the direction in interest rates. Portfolio duration is adjusted based on our outlook in conjunction with client guidelines and our risk management policies.
2 Yield Curve Positioning
We position maturities on the yield curve to benefit from relative changes in the term structure of interest rates. Our yield curve strategy employs either a bullet, ladder or barbell structure, based on expectations of yield curve shifts such as curve steepening or flattening.
3 Sector Rotation
We analyze spread relationships and the basis for risk premiums to determine relative value for various sectors. We rotate into sectors we find undervalued where sector or industry fundamentals are improving. We look to reduce exposure to sectors we deem overvalued or where we determine that risks are not fully reflected in prices.
4 Security Selection
The security selection process entails rigorous and independent assessment of such factors as fundamental credit analysis, security structural features and potential price volatility. Our "bottom up" security selection process combines the distinct talents of our analysts, traders and portfolio managers to identify the most appropriate securities based on each client's investment policy guidelines.
Credit Analysts
- Perform fundamental credit analysis on issuers
- Analyze security structural features to determine performance characteristics
Traders
- Analyze relative value of new issue and secondary market securities
- Contribute information regarding market dynamics such as supply, demand and price activity
Portfolio Managers
- Identify portfolio specific needs
- Review security contribution to overall characteristics of the client portfolio
5 Client Portfolio
- Determine client goals, objectives and risk tolerances
- Develop an investment policy statement
- Manage portfolio in accordance with the client investment policy statement
- Monitor and evaluate portfolio on an on-going basis
- Measure risk using sophisticated analytical systems
- Communicate frequently and customize reporting