Investment Approach

Aucit combines fundamental analysis with a systematic portfolio hedge approach

Using decades of investment experience in high-yield credit, we employ in-depth analytical and engaged research to identify fundamental value whilst maintaining downside protection at single security level. We position the fund to take advantage of existing and emerging market thematics, while a systematic hedge approach guides decision parameters and risk exposure at a portfolio level.

  • Short duration bonds achieve superior returns by compounding high current income and avoiding principal loss by:
    - fundamental credit analysis,
    - identifying improving cash flow returns on capital and asset protection,
    - pull to par capital appreciation,
    - opportunistic on new issue participation

  • Market risk and portfolio volatility are systematically neutralized by zero duration times spread (DTS) or zero beta exposure built from:
    - pair trades and short fundamentally,
    - catalysts of earning and rating change surprises
    - hedges on changes in sector sentiment and thematics
    - balancing Crossover short

Zero Duration Times Spread (DTS) Hedging

At the heart of our portfolio approach we have zero duration times spread exposure. Our zero beta or market neutral portfolio allows us to focus on generating idiosyncratic alpha at a company level.

Investment Process