Our process | Global approach
How we invest
As a specialist fixed income manager, Kapstream is lean, nimble and responsive. We're run by portfolio managers for portfolio managers – but that isn't all that makes us stand out from the crowd.
Kapstream's real point of difference is our investment style. We seek out value across sectors and geographies, identifying strategies priced for the best return potential in the current market environment. That means we can take advantage of unique opportunities within countries and sectors that are often overlooked or under-represented in market indices.
We use a wide range of instruments to capitalise on opportunities within the marketplace, including bonds, notes, mortgages, corporate debt, emerging market debt, convertible securities, derivatives, foreign exchange contracts, enhanced cash instruments and more.
As a result, we can generate positive returns in both rising and falling markets. We manage total portfolio risk, rather than the index risk, so our funds can generate a positive return even when indices are falling.
The outcome is superior return potential, with less risk.
Our process
|
Dynamic beta, portable alpha |
We divide each portfolio into beta and alpha components, then use innovative strategies to actively manage both. We dynamically allocate the beta component across global fixed interest markets, constantly evaluating and adjusting our allocation in response to the changing environment. Then we overlay alpha strategies to enhance returns, often using futures, options, swaps and credit default swaps. |
|
Research and analysis |
Our allocation begins with an analysis of key global economic trends. We develop our view during quarterly economic roundtable sessions with leading members of the fixed income community. Next, we consider country specific factors and market expectations, before moving on to identify specific opportunities. |
|
Innovative strategies |
We seek out and take advantage of structural inefficiencies in the market, including mispricings and spreads between countries and sectors, then exploit them using a wide range of innovative strategies. |
