HGK’s fixed income investment process focuses on the active management of spread and credit risk in lieu of interest rate risk. By utilizing extensive credit research, economic models, security option-adjusted analysis, HGK is able to identify and capitalize on opportunities and pricing inefficiencies in the bond market.
Within the course of this active portfolio management, HGK employs balanced portfolio construction with exposure to all broad sectors (Treasury, Agency, Corporate, MBS, ABS) of the fixed income market as a means of reducing volatility of returns relative to portfolio benchmarks. Portfolio duration is maintained between 90% and 110% of the benchmark in order to limit the portion of relative performance tied to an interest rate forecast, leaving sector allocation and individual security selection as the primary drivers of relative performance.
Short Duration Fixed Income
|Maturity||Benchmark||Number of Holdings||Minimum Institutional
|1 – 3 years of maturity||Merrill Lynch 1 – 3
Year Domestic Master
|100 – 110||$1 million|