The fixed income market is comprised of a variety of investors with different goals and risk constraints. Pugh Capital believes that these competing interests can create inefficiencies within the market that can be exploited through rigorous research and active management relative to a client-specified benchmark.

Pugh Capital's fixed income investment approach is designed to provide incremental returns relative to the benchmark while minimizing downside risk. Client portfolios are invested in the full spectrum of U.S. dollar denominated, investment-grade securities, with an emphasis on higher credit quality and mortgage-backed securities. Portfolio durations are managed within a range of +/- 10% of the client's Index and securities held must have investment-grade ratings.

Pugh Capital's process begins with top-down analysis to determine investment themes across fixed income sectors. We identify significant trends within the economy and the fixed income and equity markets. The firm then develops an interest rate outlook. These trends and rate forecasts are incorporated into the process of determining sector and industry weightings. At the security level, Pugh Capital's investment team conducts thorough bottom-up research on individual issues to identify the most attractive securities on a relative-value basis. Risk management techniques emphasize stress testing under different market scenarios.