Pugh Capital has been managing active fixed income portfolios since 1991. Our focus on downside risk management is not just a philosophy, it’s a discipline.

OUR PHILOSOPHY

Our investment philosophy is rooted in the belief that fixed income inefficiencies can be exploited over a market cycle and that volatility provides opportunity. Our goal is to surpass clients’ expectations related to risk management and consistent risk-adjusted returns.

OUR PROCESS

Our investment process is designed to capitalize on market inefficiencies while providing capital preservation and downside risk protection. The process combines top-down macro views, bottom-up fundamental research, downside risk management, and ongoing process enhancements. Investment ideas are developed through this process, with responsibility shared by the CIO, portfolio managers and analysts. A key differentiator of our process is our boutique model and team-based approach, which helps ensure that all perspectives are heard. The depth and breadth of our investment professionals’ experience also enhances our investment process. Several elements of each phase are summarized below.

  • Top-Down
    Macro Analysis

    • Top-Down
      Macro Analysis

      • Evaluation of economy and market
      • Analysis of risks and opportunities
      • Formulation of investment themes
      • Set asset allocation strategy
  • Bottom-up
    Fundamental Analysis

    • Bottom-up
      Fundamental Analysis

      • Research driven issuer analysis
      • Identification of stable credits
      • Relative value analysis
      • Consistent with macro-outlook
  • Risk
    Management

    • Risk
      Management

      • Maintain a diversified portfolio
      • Manage key areas of portfolio risks
      • Preserve minimum liquidity
      • Active sell discipline
  • Monitoring &
    Measuring

    • Monitoring &
      Measuring

      • Improve through lessons learned
      • Deepen collective knowledge
      • Continuous improvement of process
      • Uncover new opportunities