The Strategy has a flexible investment remit, whose nature allows us to express high-conviction views on credit and market opportunities in emerging market sovereign debt, local currency debt and corporate debt across all parts of the credit cycle.
Strategy overview
- We can access multiple alpha sources
- We have the ability to potentially exploit inefficiencies in all market conditions
- We have the ability to hold short positions through derivatives
- Our focus is on capital preservation and we gain insight from our fundamental research.
Our approach
Investment strategy
- The strategy has a flexible investment remit, whose nature allows us to express high conviction views on credit and market opportunities in emerging market sovereign debt, local currency debt and corporate debt across all parts of the credit cycle.
- The unconstrained nature of the strategy means we can access multiple alpha sources and have the ability to potentially exploit inefficiencies in all market conditions, with the ability to hold short positions through derivatives
- High conviction views are expressed through a combination of bottom-up fundamental, relative value and directional trades
- Returns come from a variety of sources including opportunities that are overlooked within traditional EM products
- The BlueBay Fixed Income Team believes that taking into account environmental, social and governance (ESG) factors is an important aspect of the investment process.
Emerging market debt experience
- Our experience covers the full spectrum of emerging market sub-asset classes – from traditional benchmarked single sector strategies to unconstrained strategies and hedge funds. Our diversified investor base entrusts us with managing assets incorporating standardised as well as customised, client-specific requirements.
- We have always endeavored to be at the forefront of development and innovation in the market as the asset class has evolved. Our AUM has grown substantially as the asset class matured - a strong reflection of our capability and our offerings over the past two decades
- We are an active manager, and our philosophy is rooted in the belief that EM remains an inherently inefficient asset class – there are price discrepancies which can be exploited in meaningful size to pursue strong risk-adjusted returns.
- Our experience in multiple products demonstrates an ability and keen willingness to seek returns through superior and meticulous research and strong risk management with a focus on capital preservation.