Fixed Income

Objective

The StoneRidge Core Fixed Income Portfolio seeks to outperform core fixed income benchmarks (typically the Lehman Brothers Aggregate Bond Index) and industry peers over a market cycle (3 – 5 year time horizon).

Philosophy

We believe a series of smaller decisions will enable us to consistently outperform our respective benchmarks and that income will be the dominant component of fixed income returns over time, especially in short duration portfolios. The primary sources of value added in the StoneRidge process are security selection and sector rotation. This is complemented by selective yield curve positioning and controlled duration management, consistent with preservation of capital.

Process

The Fixed Income management style utilized by StoneRidge is a conservative core approach.  We employ a disciplined, multi-stage investment process that combines the benefits of fundamental and technical analysis.

The first stage of the process is bottom up, as the portfolio manager evaluates the credit profile of existing holdings and securities available for purchase through the secondary market.  Only issuers whose credit profile is found to be stable-to-improving are eligible for purchase in a client’s portfolio.  The second stage involves a macro review of sectors, yield curve positioning, quality and duration.  The final stage is the actual construction of the fixed income portfolio.  In accordance with client guidelines and objectives, we focus on building a high quality, higher yielding and diversified portfolio that provides liquidity.