Dusty: We employ a total return strategy. We believe that by investing in undervalued securities and sectors with improving fundamentals, that we have the opportunity to not only preserve capital but potentially capture principle appreciation. Equally as important though, is identifying those securities that are overvalued and those sectors that have declining fundamentals in an effort to limit downside risk.
Ron: [00:00:22] We are top down aware and bottom up focus. So basically we do in-depth credit analysis, we do in-depth relative value analysis. So we’re not only looking at the credit and seeing if the credit is stable. We’re looking at it and saying, “Are our investors getting adequately compensated for that credit risk?” So it’s a combination of looking at the credit, looking at the relative value, making sure that they’re both very good.
Dusty: [00:00:54] Our research team conducts an in-depth analysis of issuers, sectors, states and geographic regions and collaborates daily with portfolio managers to determine relative value. High quality investment grade bonds in our opinion provide the most liquidity and flexible trading and therefore are the key component of our investment strategy.
Ron: [00:01:13] The boutique structure enables us to do what we love to do most, invest in the municipal market. So it enables us to concentrate on the municipal market, look for the opportunities and perform for our investors while RidgeWorth does the administrative work that is necessary in our business also. So the combination works great. I think it’s a win/win situation.
Dusty: [00:01:37] We believe that a total return strategy belongs within an investor’s portfolio, especially those in higher tax brackets. Our investment team has more than 20 years experience in both bull and bear markets. Since the credit crisis, fundamentals really do matter and even though municipals rarely default, they do out- and underperform. And our strategy, which has been in place for more than 20 years, continues to capture the dynamic changes in valuation. We strive to provide our investors with a competitive after tax return through conservative credit, sector and curve allocation and continuous bottom up fundamental research.
DISCLOSURES: The assertions contained herein are based on Seix’s opinion. This information is general and educational in nature and is not intended to be authoritative. All information contained herein is believed to be correct, but accuracy cannot be guaranteed. This information is based on information available at the time, and is subject to change. It is not intended to be, and should not be construed as, investment advice. Investors are advised to consult with their investment professional about their specific financial needs and goals before making any investment decisions. ©2015 Seix Investment Advisors LLC is a registered investment adviser with the SEC and a member of the RidgeWorth Capital Management LLC network of investment firms.