Corporate Bond Management
We are a specialty manager of corporate bond portfolios for some of Canada’s most sophisticated investors.
Our methods are not quantitative or fashionable.
We have been generating excellent returns since 1997 through our credit analysis and security selection1. Our investment team comprises professionals with diverse backgrounds, boasting extensive experience in corporate debt, banking, trading, and credit rating agencies. We spend a lot of time examining issuers and assessing their creditworthiness. Our long collective experience in credit analysis contributes to our ability to avoid overpriced and risky issuers. We do not avoid risk, rather we ensure credit risk is priced appropriately and that our client portfolios are compensated for the risks they assume.
Our corporate bond portfolios range from AAA to distressed debt. We invest in issues that are undervalued given their credit risk and potential return. We tend to exploit illiquidity, buying when fear is prevalent and selling into enthusiasm.
Our contrary nature is tempered by our risk management discipline. Many years of investing in distressed debt has given us a substantial insight into the value of issuers after default. We have incorporated this into our research and look at the loss potential of each issuer prior to investment. We call this our Maximum Loss analysis and this limits the size of each position based on its potential impact on return.
Demand and supply pressures often move the market prices of corporate bonds to valuation extremes. We believe that this creates opportunity for our disciplined and value oriented approach to corporate bonds. From the highest rated issuers to those near default, our valuation discipline creates substantial risk-adjusted returns. It is not easy to invest when markets are paralyzed by fear and the financial press is filled with crisis and gloom. We have found these excellent times to find bargains in corporate bonds, as those who overpaid highly promoted and fashionable corporate bonds sell at cheap prices.
1 Canso’s Investment Grade and Broad Corporate bond mandates are in the top quartile of thePavilion™ Performance Appraisal Report of Canadian fixed income managers since inception in 1997.
Institutional Investors
We offer segregated and pooled investment management services to institutional investors with $50 million or more to invest. Amounts less than $50 million are accommodated through third party dealers.
Successful investing generates returns over long periods through economic and financial cycles.
We are known as a specialty manager of corporate bond portfolios and our mandates have produced superior results1 since our firm was founded in 1997. Product offerings include Investment Grade Corporate, Broad Corporate (up to 30% exposure to below investment grade credit) and Corporate Value (no restrictions by credit rating).
Other specialty portfolios include Short Term and Floating Rate Bonds, Inflation-Linked Bonds, Bank Loans, Infrastructure Debt, and Long Duration Credit.
Our institutional clients include major corporations, endowments, insurance companies, unions and universities.
We are dedicated to delivering superior investment performance to our clients. Successful investing generates returns over long periods through economic and financial cycles. Our mission is to deliver returns to those who have entrusted us with funds to manage.
All of our employees invest in our funds, ensuring the perfect alignment of our interests with our clients.
1 Canso’s Investment Grade and Broad Corporate bond mandates are in the top quartile of the Pavilion™ Performance Appraisal Report of Canadian fixed income managers since inception in 1997.
Private Investors
In the dynamic landscape of financial markets, private investors frequently allocate significant portions of their hard-earned capital in pursuit of reasonable investment returns. Our expertise lies in assisting you achieve your investment goals through a variety of actively managed investment strategies.
We invest in a wide variety of securities but we look before we leap.
We are well known as a specialty manager of Canadian corporate bond portfolios. Our portfolio managers and analysts have many years of experience in banking and credit analysis. This creates our simple investment conviction: we want to get our money back!
Many investors claim to invest only in “low risk” securities that have comfortable monikers like “world class” and “blue chip”. It amazes us how many of these popular investments have serious financial problems which result in significant losses to investors.
We invest in a wide variety of securities but we look before we leap. We use our considerable experience at banking and credit analysis to consider the downside to an investment before purchase. We only invest when we are compensated for the risk assumed.
Beauty is in the eye of the beholder. We would rather invest in a distressed bond trading well below its intrinsic value than a hyped equity trading far above any reasonable calculation of value.
We manage money for some of the world’s most sophisticated investors. Our services to private investors include a variety of fixed income and equity products.
For investment amounts of less than $50 million, investors can access Canso through third party dealers. Ask your investment advisor about Canso pooled funds or mutual funds offered by our affiliates Lysander Funds Limited and PBY Capital.
