The INCORE Investment Grade Convertible fund’s approach is centered on bottom up research and has remained consistent over the last 25 years. The objective is to achieve superior returns while minimizing risk
by identifying and remaining fully invested in convertible securities which possess the following characteristics: 1) strong underlying equity potential, 2) high quality financial characteristics, and 3) the opportunity for solid total return over
a 12-18 month time horizon. Our performance goal is to outperform the Bank of America Merrill Lynch All Investment Grade US Convertibles Index (VXA1) over a full market cycle.
Philosophy & Process
The convertible valuation
process focuses on the intrinsic value of the underlying common stock, the fixed income component, and the convertible security itself. The methodology used to value the equity component includes, but is not limited to, use of a dividend discount
model, a P/E divided by growth plus yield screen, and screens based on statistical cheapness, quality of earnings, and mean reversion. Additionally, earnings revisions are analyzed as are indicators of changes in investor sentiment.
Strategy assets include both discretionary and non-discretionary assets under management that are managed in a similar style.