20 Years of Common Sense Investing: Our Top 5 Principles

We have always believed that common sense is the key to successful investing. Since launching our Strategic Income Fund two decades ago, our straightforward, flexible approach has allowed us to navigate all types of markets and consistently deliver strong risk-adjusted returns over time.

When we launched the Strategic Income Fund nearly 20 years ago, we knew we were trying something a little different. Our goal was to create an all-weather bond fund that would effectively act as a one-stop-shop for our private clients, providing a compelling yield without taking on too much risk. We designed the strategy to be flexible so we could invest in the most attractive areas of the market based on economic circumstances and cyclical forces.

Although “go-anywhere” bond funds were relatively uncommon back then, to us the approach seemed somewhat obvious. Common sense dictated that having the ability to invest where we wanted, regardless of credit rating, sector, or maturity, would give us the best chance to create a fixed income portfolio that could do well in any market environment.

Looking back on nearly two decades of outperformance, we feel our strategy has delivered just as we hoped it would. Our day-to-day decisions have always been informed by a range of factors, but our commitment to our philosophy has never wavered. Below are our top five common sense investment principles.

Do Not Follow the Crowd

When looking for investment opportunities, we have always found it is better to focus on areas of the market that are somewhat under the radar. We prefer to invest in lesser-known companies and use our thorough due diligence process to determine whether they are a good fit for our portfolio. Likewise, we do not place too much emphasis on credit ratings, as they tend to be backward-looking and can be slow to reflect improving fundamentals. In general, our goal is to find companies with durable business models and solid financials.