Our Strategy

Our Approach

Risk Managed: We aim to deliver low volatility, absolute returns in a long-only fixed income portfolio. We manage the portfolio to be impartial to economic factors, such as interest rates. By seeking to deliver performance independent of market direction, we believe we help investors diversify their fixed income so no single risk overwhelms a portfolio.

Fundamental: “Short-duration credit meets Benjamin Graham” best describes our strategy. We apply deep fundamental research to carefully select companies with defensive characteristics. We invest in securities from these companies which have short timeframes and are available at attractive valuations with a margin of safety. The result is a portfolio with low correlation to traditional fixed income – the risk profile for which our clients hire us.

Long Term: Our approach emphasizes investing through market cycles. We are infrequent traders, and we adhere to our risk-managed, fundamental process to maintain a consistent portfolio across changing market environments. We aim to offer a long-term strategic way for investors to diversify their existing investment risks and preserve capital while maintaining purchasing power and producing income.

Flexible: Our focus on addressing our clients’ fixed income goals with a low volatility portfolio provides flexibility if their needs change unexpectedly. We seek to deliver a solution to minimize the chances of “buyer’s remorse” in case changes result in shorter or longer than expected investment horizons.

Capacity-Constrained: We target a niche market segment that is overlooked and underrepresented in most portfolios. We embrace the resulting capacity constraint, which we believe is an advantage for our clients.

Our Process

Zeo Filter Graphic

How to Invest

Mutual Fund: ZEOIX

Managed Accounts

“Absolute return” is the return that an asset achieves over a certain period of time without comparison to any other measure or benchmark. An absolute return strategy seeks to make positive returns by employing investment management techniques that differ from traditional strategies. Absolute return differs from a relative return approach in which the return that an asset or strategy achieves is measured relative to its peers, categories, benchmarks and/or the market as a whole.

“Long-only” is a feature of an investment strategy that only holds “long” positions in assets and securities. To be “long” an asset, derivative or security means being a buyer, generally one who benefits from an increase in prices; the opposite is to be “short” which means the holder of the short position gains profits when the prices decrease.

“Yield” is the amount in cash (usually expressed as an annual percentage based on the investment’s cost, its current market value or its face value) that returns to the owners of a security, in the form of interest or dividends received from the security. Normally, it does not include the price variations, distinguishing it from the total return.