High Yield Fixed Income

Opportunistic investments in non-investment grade corporate bonds for enhanced yield and capital appreciation.

Overview

AMI's High Yield Fixed Income Strategy seeks to provide both income and capital growth by targeting opportunities beyond the constraints of traditional benchmarks. We believe that high yield indices are structurally flawed, as they overweight the most indebted issuers. Instead, our approach emphasizes smaller issuers, special situations, and a bias toward higher-quality BB-rated credits. Through rigorous bottom-up security selection, complemented by disciplined top-down risk management, we aim to deliver strong risk-adjusted returns while actively monitoring portfolio holdings for changes in fundamental quality.

Quality Bias

Focus on BB-rated credits, with selective exposure to smaller issuers and special situations overlooked by benchmarks.

Income & Growth

Strategy targets both attractive current income and long-term capital appreciation.

Risk-Adjusted Focus

Aims to outperform through prudent credit selection rather than reliance on market beta.

Strategy Details as of 6/30/25

Inception Date January 1, 2013
Investment Philosophy Active management targeting misunderstood opportunities to generate alpha
Target Universe Investment grade bonds, high yield bonds, convertible bonds
Portfolio Construction Concentrated portfolio of between 20-50 registered bonds
Typical Duration 2-5 years
Benchmark ICE Bof A BB-B 1-10 year US High Yield Index
Risk Management Rigorous bottom up Analysis, top down risk management
Key Differentiator Focus on downside capture
Cash Position Under 2%
Investment Style Quality high yield
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