Camden Bond is a core-plus fixed income strategy that seeks to generate returns in excess of the Barclays Aggregate Index. Since 1997, the strategy has strived to deliver attractive returns through all market environments while maintaining below average volatility.
Camden builds a diversified portfolio predominately of unlevered hedged convertible bonds. When each convertible is paired with an equity hedge, they collectively create a synthetic discount corporate bond instrument, which we believe provides downside protection from negative corporate events. Typically, there are approximately 80-100 paired positions in each client’s portfolio.
We believe that these instruments are more persistently mispriced than similar credits found in the traditional senior bond market.
The strategy’s interest rate exposure is obtained through Treasury futures, which are used to closely replicate the duration of the Barclays Aggregate Bond Index and are generally uncorrelated to credit.
Camden Bond may also utilize a client’s preferred or customized fixed income benchmark.
Please refer to the Camden Bond Composite for historical performance.