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Website data and information as of December 31, 2016.

The information in this website is intended for U.S. institutional investors only. No part of this material may be modified, distributed or duplicated without the explicit permission of Pugh Capital Management.


Third-party rankings and recognition from rating services or publications which are not a guarantee or reliable indicator of future investment success. Working with a highly rated adviser does not ensure that a client or prospective client will experience a higher level of performance or results. These ratings should not be construed as an endorsement of the firm by any client nor are they representative of any one client’s evaluation. Generally, ratings, rankings and recognition are based exclusively on information prepared and/or submitted by the recognized firm.

Emerging Manager Monthly 2011 Fixed Income Manager of the Year.  Pugh Capital Management was named 2011 Fixed Income Manager of the Year by Emerging Manager Monthly. Pugh Capital was one of seven companies honored by the publication, which covers small, boutique and women- and minority owned asset management firms. The Emerging Manager Monthly awards, in their sixth year, also name winners in Domestic All-Cap, Large-Cap, Mid-Cap, Small-Cap, Small to Mid-Cap Equity and International Equity. The Emerging Manager Monthly awards are decided by a panel of industry experts who evaluated 339 products under quantitative and qualitative measures and reviewed items related to growth in assets and performance.

Seattle Business Magazine CEO of the Year Award.  The Seattle Business Magazine’s Executive Excellence Awards program recognizes Washington state executives who have demonstrated extraordinary leadership in guiding their companies or nonprofits to success. There was 1 winner in each of the 5 CEO of the Year categories chosen from a list of 85 nominees. Judges consider a wide range of criteria including length of time in leadership position, growth of company under leadership, notable milestones or projects led by executive, etc.

Additional information regarding this award, please go to:



The information contained herein has been obtained from sources that we believe to be reliable, but its accuracy and completeness are not guaranteed. Pugh Capital reserves the right at any time and without notice to change, amend, or cease publication of the information. It has been prepared solely for informative purposes on an “as is” basis. Pugh Capital does not make any warranty or representation regarding the information. No part of this material may be modified, distributed or duplicated in whole or in part without the explicit written permission of Pugh Capital Management.

This web site is a publication of Pugh Capital Management, Inc. Nothing in this publication is intended to be relied upon as a forecast, research, constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The contents of this publication are intended for general information purposes only, and investors should evaluate their own situation and ability to invest for the long-term, especially during periods of volatility in the financial markets.

The information in this website is intended for U.S. institutional investors only. No part of this material may be modified, distributed or duplicated without the explicit permission of Pugh Capital Management.


The data contained on this web site might have been obtained from a variety of sources and may be subject to change. Pugh Capital disclaims any and all liability for the information, including without limitation, any express or implied representations or warranties for information or errors contained in, or omissions from, the information. Pugh Capital and its employees and officers shall not be liable for any loss or liability suffered by you resulting from the provision to you of the information or your use or reliance in any way on the information.


Some of the forecasts, estimates and certain information contained herein are based upon Pugh Capital Management’s proprietary research and should not be interpreted as investment advice, as an offer or solicitation, nor as the purchase or sale of any financial instrument. Forecasts and estimates have certain inherent limitations, and unlike an actual performance record, do not reflect actual trading, liquidity constraints, fees and/or other costs. In addition, references to future results should not be construed as an estimate or promise of results that a client portfolio may achieve but rather our opinion of one possible outcome.


There is no guarantee that these investment strategies and processes will work under all market conditions and investors should evaluate their ability to invest for a long-term, especially during periods of volatility in the market.


Statements concerning financial market trends are based on information available and current market conditions, which will fluctuate. There is no guarantee that any investment strategy will work under all market conditions, and investors should evaluate their ability to invest for the long-term, especially during periods of volatility in the market. Our outlook and strategies are our current opinion as of the date of publication and are subject to change without notice.


Investing in securities involves risk of loss that clients should be prepared to bear.  Securities will fluctuate in value on a daily basis.  Pugh Capital does not guarantee investment returns or performance for any securities or strategies.  The following risks apply to securities primarily included in our portfolios managed for clients.

Events affecting the issuer of fixed income securities, such as failing to meet its obligations to make payments to its bondholders (default risk), or a downgrade in its credit ratings or underlying assets backing the securities, may cause a decline or loss in the value of its securities.

The market values of debt securities are sensitive to prevailing interest rates, and a rise in interest rates generally causes a decline in the value of fixed-income securities (interest rate risk).  This effect is more pronounced on fixed income securities of longer duration, meaning longer-term fixed income securities have heightened risk in this regard.  This risk is more prevalent for our Long Duration Strategy, Long Credit Strategy, and Long Corporate strategies.

Fixed income securities are also subject to general market risks, meaning a decline in the value of securities due to factors that affect the overall market. It may become difficult to purchase or sell at an advantageous time or price (liquidity risk) under adverse market or economic conditions independent of any specific adverse change in the conditions of a particular issuer.  Liquidity risk has increased in recent years with the reduction in dealer market-making capacity.  Market risks include, but are not limited to, government actions, regulatory environment, and economic conditions.  Fixed income securities are also subject to such risks that may only affect a sector of the market, if they fall within the sector.

Mortgage-related and other asset-backed securities are subject to certain additional risks.  Generally, rising interest rates tend to extend the duration of fixed-rate mortgage-related securities, making them more sensitive to changes in interest rates (extension risk).  When interest rates decline, borrowers may pay off mortgages sooner than expected, and investors may have to reinvest at lower interest rates (pre-payment risk).  Certain types of asset-backed securities may also be subject to pre-payment risk, as well as additional risks associated with the nature of the assets and the servicing of those assets.

There is risk that the investment style of Pugh Capital may underperform other investment styles or the overall market.

This material contains the current opinions of the manager and such opinions are subject to change without notice. This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Statements concerning financial market trends are based on current market conditions, which will fluctuate. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed.

Statements concerning financial market trends are based on current market conditions, which will fluctuate.

Pugh Capital Email Communications Disclosures

The following is generally applicable to all electronic messages you receive from Pugh Capital Management Inc. (“Pugh Capital”):

This is a confidential communication between sender and its intended recipient.

We retain copies of messages and monitor them

Pugh Capital reserves the right, to the extent permitted by applicable law, to monitor electronic communications and store such messages in a manner and at a location within Pugh Capital’s discretion.

This message is not intended as an official communication

The information in this communication is provided purely as an informational courtesy. In the event of a conflict between this communication and official communications (i.e. statements, confirmations, etc.), the official communication controls.

Information may not be secure when transmitted over the Internet

Pugh Capital makes no representation or warranty that electronic messages will be confidential. Electronic messages may be intercepted or accessed by unauthorized or unintended parties, may not arrive at the intended destination, or may not arrive in the form transmitted.

Electronic messages may be delayed, and information in electronic messages may be not be up to date and may not be updated

Electronic message communications cannot be guaranteed to be timely, secure or error free. Information provided speaks only as of its date. We have not undertaken, and will not undertake, any duty to update the information or otherwise advise you of changes in our opinion or in the research or information we make available to you.

Electronic messages should not be confused with a research report

Unless otherwise noted, electronic messages do not constitute Pugh Capital research even if they refer to a research or analyst report. Unless otherwise indicated, any views expressed are those of the author alone and may differ from others within Pugh Capital. Past performance is not indicative of future returns.

This message is not intended to serve as an offer or solicitation

This message is not an offer (or solicitation of an offer) to buy or sell the securities or instruments that may be mentioned.


Past performance is not a guarantee or a reliable indicator of future results. Investing involves risk; principal loss is possible.  All portfolio returns of Pugh Capital Management are based in U.S. dollars and are computed using a time-weighted total rate of return. The total returns include reinvestment of interest and other earnings. Account returns may be higher or lower than the product composite returns due to differences in portfolio holdings, timing of security transactions, and account inception date.

Gross of fee performance is calculated net of all transaction costs but before investment management fees, and includes accrued interest. Net of fee performance reflects the deduction of actual investment management fees and all transaction costs but does not reflect the deduction of custodial fees. Pugh Capital does not assess performance based fees.  Fees are disclosed as part of the firm’s Form ADV Part 2A, which is available upon request.

Pugh Capital claims compliance with the Global Investment Performance Standards (GIPS®). Pugh Capital has been independently verified for the periods from January 1, 2006 to December 31, 2015 by Absolute Performance Verification LLC. To receive GIPS-compliant disclosures of composites, the verification and performance examination reports and additional information regarding policies for calculating and reporting returns, please contact Deanna Hobson at (206) 322-4985, or write Pugh Capital Management, 520 Pike Street, Suite 2900, Seattle, WA 98101, or

It is not possible to invest directly in an index, and an index does not incur charges or expenses. Holdings in the strategy may differ from the index.

Effect of Management Fees.  Returns are presented gross of management fees and include the reinvestment of all interest and other earnings. Actual returns will be reduced by investment advisory fees and other expenses that may be incurred in the management of the account.  As an example, the effect of investment management fees on the total value of a client’s portfolio assuming (a) quarterly fee assessment in arrears, (b) $50,000,000 initial investment, (c) portfolio return of 3% a year, and (d) 0.25% annual investment advisory fee would be $127,215 in the first year, and cumulative effects of $671,937 over five years and $1,441,217 over ten years.  Actual management fees may vary, depending upon, among other things, the applicable management fee schedule and portfolio size.  Investment management fees are described in Part 2A of the adviser’s Form ADV and current fee schedules are available upon request.


The report contained herein is for informational purpose only to demonstrate Pugh Capital’s credit analysis and selection process. It should not be considered as investment advice or a recommendation of any particular security. The report contains the current opinions of the analyst when the report was written and such opinions are subject to change without notice. Such reports are for internal use only at Pugh Capital. Please do not redistribute.


The attribution analysis contained herein is calculated by Pugh Capital and is intended to provide an estimate as to which elements of a strategy contributed (positively or negatively to a portfolio’s performance. Attribution analysis is not a precise measure and should not be relied upon for investment decisions.


Performance results for certain charts and graphs may be limited by date ranges specified on those charts and graphs; different time periods may produce different results.


%Growth 65+: Annual change in Total Population aged 65 and over. Source: US Census Bureau.

%Growth Working Age: Annual change in Total Working Age Population (defined as aged 15-64). Source: US Census Bureau.

ABS: Asset Backed Securities. ABS bonds are securities created from car loan payments, credit card payments or other loans. As with mortgage-backed securities, receivables and loans are bundled together and packaged into securities that are sold to investors. Asset-backed securities are usually “tranched,” meaning that principal and interest are directed to specific classes in a predetermined order. ABS contain risks, including credit risk and cash flow timing uncertainty.

Alpha: The extra return due to nonmarket factors. This risk-adjusted factor takes into account both the performance of the market as a whole and the volatility of the manager’s performance. A positive alpha indicates that a manager has produced returns above the expected amount at that risk level, and vice versa for a negative alpha.

Average Life: The length of time the principal of a debt issue is expected to be outstanding. Average life is an average period before a debt is repaid through amortization or sinking fund payments.

Average (Credit) Quality: The weighted average of all the bond credit ratings in a bond portfolio.

BABs: Build America Bonds. These bonds are taxable municipal bonds that feature tax credits and/or federal subsidies for bondholders and state and local government bond issuers. Build America Bonds (BABs) were introduced in 2009 as part of President Obama’s American Recovery and Reinvestment Act to create jobs and stimulate the economy. BABs attempt to achieve this by lowering the cost of borrowing for state and local governments in financing new projects. BABs contain risks, including credit risk and interest rate risk.

Batting Average: A measure of the frequency of success. This ratio is calculated by taking the number of periods in which the manager’s return equals or outperforms the return of the selected benchmark, divided by the total number of periods. This measure indicates a manager’s frequency of success, without regard to the degree of outperformance.

Bank Loan Growth: This tracks the aggregate assets and liabilities of banks within an economy (including private or commercial banks, central banks or both).

bps: basis points. A basis point is a unit equal to one hundredth of a percentage point (1/10000 or 0.01%).

CMBS: Commercial Mortgage Backed Securities. CMBS bonds are backed by mortgages on commercial rather than residential real estate. When compared to a residential mortgage-backed security (RMBS), a CMBS often provides a lower degree of prepayment risk because commercial mortgage loan documents often prohibit prepayments for a stated period and/or charge significant prepayment penalties. CMBS contain risks, including credit risk and cash flow timing uncertainty.

CBO: Congressional Budget Office.

Credit Index Excess Return: A monthly excess return is the difference between total returns of the security and an implied Treasury portfolio matching the term-structure profile of that security. Total returns can be compounded. By separately compounding these two series of monthly total returns, we arrive at the two periodic total returns. The difference between them is the periodic excess return.

Change in C&I Loans: Commercial banks in the US Assets % Change Commercial and Industrial Loans. Source: Federal Reserve.

Consumer Credit: Federal Reserve Consumer Credit Outstanding Amount Total. Source: Federal Reserve.

Core PCE: US Personal Consumption Expenditure Core Price Index YoY. Source: Bureau of Economic Analysis.

Convexity: A measure of the curvature in the relationship between bond prices and bond yields that demonstrates how the duration of a bond changes as the interest rate changes.

CPI: Consumer Price Index.

Credit Risk: Risk of loss of principal or loss of a financial reward stemming from a borrower’s failure to repay a loan or otherwise meet a contractual obligation.

Duration Times Spread : DTS is calculated on an individual bond level by multiplying the percent market value, the duration, and the spread of the bond. It has been shown to be a very strong predictor of excess return volatility.

Duration Risk: The risk of a fixed-income investment’s price sensitivity to a change in interest rates.

Effective Duration: A calculation used to approximate the actual, modified duration of a callable bond.

Beta: Is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Beta is used in the capital asset pricing model (CAPM), a model that calculates the expected return of an asset based on its beta and expected market returns. Also known as “beta coefficient.“

Information Ratio: A ratio of portfolio returns above the returns of a benchmark (usually an index) to the volatility of those returns. The information ratio (IR) measures a portfolio manager’s ability to generate excess returns relative to a benchmark, but also attempts to identify the consistency of the investor. This ratio will identify if a manager has beaten the benchmark by a lot in a few months or a little every month. The higher the IR the more consistent a manager is and consistency is an ideal trait.

Z-Score: Is a statistical measurement of a score’s relationship to the mean in a group of scores. A Z-score of 0 means the score is the same as the mean. A Z-score can also be positive or negative, indicating whether it is above or below the mean and by how many standard deviations.

Option Adjusted Spread (OAS): A measurement of the spread of a fixed-income security rate and the risk-free rate of return, which is adjusted to take into account an embedded option. Typically, an analyst would use the Treasury securities yield for the risk-free rate.


Barclays Capital U.S. Aggregate Bond Index: This index covers the US Dollar-denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities, with index components for Treasury, Agency and Corporate securities, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS (Asset Backed Securities), CMBS (Commercial Mortgage Backed Securities) and BABs (Build America Bonds). The index was created in 1986 with index history backfilled to January 1, 1976. All issues in the Aggregate Index are rated Baa3/BBB-/BBB- or higher (using the middle rating of Moody’s, S&P, and Fitch, respectively) and have at least one year to maturity and have an outstanding par value of at least $250 million.

Barclays Capital U.S. Corporate Index: This broad-based benchmark measures the investment grade, fixed-rate, taxable, corporate bond market. It includes US dollar-denominated securities publicly issued by US and non-US industrial, utility, and financial issuers that meet specified maturity, liquidity, and quality requirements. Securities in the index roll up to the U.S. Credit and U.S. Aggregate Indices. The index breaks down to industry-level components, such as banking, Insurance, retailers, automotive, pharmaceuticals, telecommunications, energy, etc. The US Corporate Index was launched on January 1, 1973.

Citibank Economic Surprise Index: This measures data releases relative to the consensus of analysts’ expectations. The Index covers mostly activity indicators. The neutral level of the indices is zero. A positive reading means that economic data has been better than expected.

MOVE Index or Merrill Option Volatility Estimate Index: This is a yield curve weighted index of the normalized implied volatility on 1-month Treasury options. It is the weighted average of volatilities on the CT2, CT5, CT10, and CT30. MOVE is a trademark product of Merrill Lynch.

VIX Index or CBOE SPX Volatility Index (The Chicago Board Options Exchange Volatility Index): The VIX reflects a market estimate of future volatility, based on weighted average of the implied volatilities for a wide range of option strikes. It is a widely used measure of market risk and is often referred to as the “investor fear gauge.” VIX values greater than 30 are generally associated with a large amount of volatility as a result of investor fear or uncertainty, while values below 20 generally correspond to less stressful, even complacent, times in the markets.

S&P 500 Index. This unmanaged index is generally considered representative of the stock market as a whole. The index focuses on the Large-Cap segment of the US equities market. S&P is a registered trademark of Standard & Poors Financial Services LLC (“S&P”), a subsidiary of The McGraw Hill Companies, Inc.

S&P/Case-Shiller Composite-20 Home Price Index: This index comprises price changes within all 20 metropolitan markets including Boston, Chicago, Denver, Las Vegas, Los Angeles, Miami, New York, San Diego, San Francisco, Washington DC, Atlanta, Charlotte, Cleveland, Dallas, Detroit, Minneapolis, Phoenix, Portland, Seattle, and Tampa. It is launched by Macro Markets LLC and S&P. The index is not inflation and seasonally adjusted. Case-Shiller® and Case-Shiller Indexes® are registered trademarks of Fiserv, Inc.

The BofA Merrill Lynch Bond Indices: These indices offer performance coverage of the fixed income markets. They cover over 5,000 indices, tracking $50 trillion in fixed income securities that spread out in sovereign debt, global/regional investment grade, global high yield, global emerging and other markets. The indices use four-tier sector classification schema (level 1 – asset class, such as sovereign and corporate; level 2 – group, such as financial, industrial and utility for corporate; level 3 – category, such as automotive, basic industry, etc. for industrial; and level 4 – sub-category, such as automakers, auto loans, auto parts and equipment for automotive). Each index sets its own rules for security inclusion, rebalance and performance calculation.

The BofA Merrill Lynch US Corporate Index: This index tracks the performance of US dollar-denominated investment-grade corporate debt, that is publicly issued in the US domestic market. Qualifying securities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch) at least 18 months to final maturity at the time of issuance, at least one year remaining term to final maturity as of the rebalancing date, a fixed coupon schedule and a minimum amount outstanding of $250 million. Index constituents are capitalization-weighted based on their current amount outstanding times the market price plus accrued interest. The index breaks down to sub-indices of financial, industrials and utility and further drills down to industry components, such as banking, insurance, automotive, consumer cyclical, healthcare, telecommunications, energy, etc. The index was created on December 31, 1972.

The BofA Merrill Lynch Build America Bond Index: This index tracks the performance of US dollar-denominated investment grade taxable municipal debt publicly issued under the Build America Bond program by US states and territories, and their political subdivisions, in the US domestic market. Qualifying securities must have a minimum amount outstanding of $1 million, at least one year remaining term to final maturity, a fixed coupon schedule and an investment grade rating (based on an average of Moody’s, S&P and Fitch). In addition, qualifying securities must be “direct pay” (i.e., a direct federal subsidy is paid to the issuer). Index constituents are capitalization-weighted based on their current amount outstanding. The index was created on April 30, 2009.

It is not possible to invest directly in an unmanaged index.


References to specific securities and their issuers are for illustrative purposes only and are not intended, and should not be interpreted, as recommendations to purchase or sell such securities. Pugh Capital may or may not own the securities referenced and, if such securities are owned, no representation is being made that such securities will continue to be held.


Statements concerning financial market trends are based on information available and current market conditions, which will fluctuate. There is no guarantee that these investment strategies will work under all market conditions, and each investor should evaluate their ability to invest for the long-term, especially during periods of downturn in the market. Outlook and strategies are subject to change without notice.


No representation is being made that any account, product, or strategy will or is likely to achieve profits, losses or results similar to those shown. Scenario analysis of performance results has several inherent limitations. Unlike an actual performance record, simulated results do not represent actual performance and are generally prepared with the benefit of hindsight. There are frequently sharp differences between simulated performance results and the actual results subsequently achieved by a particular account, product, or strategy. In addition, since trades have not actually been executed, simulated results cannot account for the impact of certain market risks such as lack of liquidity. There are numerous other factors related to the markets in general or the implementation of any specific investment strategy, which cannot be fully accounted for in the preparation of simulated results and all of which can adversely affect actual results.


eVestment and its affiliated entities (collectively, “eVestment”) collect information directly from investment management firms and other sources believed to be reliable; however, eVestment does not guarantee or warrant the accuracy, timeliness, or completeness of the information provided and is not responsible for any errors or omissions. Performance results may be provided with additional disclosures available on eVestment’s systems and other important considerations such as fees that may be applicable. Not for general distribution. All categories not necessarily included; Totals may not equal 100%. Copyright 2013-2014 eVestment, LLC. All Rights Reserved. Please note we subscribe to eVestment Alliance analytics. There is no fee associated with being included in the eVestment Alliance universes.


Portfolio structure/allocation is subject to change without notice and may not be representative of current or future allocations.


Unless otherwise stated, the source of information is Pugh Capital Management.