Our disciplined and robust process, attention to risk management, independent research and integrated team approach are all vital components.
A global approach to exploit the globalisation of the high yield market.
By searching the capital structures of issuers for securities, we seek bonds and derivatives with superior relative value.
Identifying outperforming securities is more important than picking issuers that simply pay back.
A skilled, integrated team whose principal members have worked together since 2004.
We believe that global, relative-value investing throughout the capital structures of issuers can deliver strong returns through the cycle.
Through top-down analysis, we determine our risk appetite and the return prospects of different regions and sectors. These findings direct our disciplined, bottom-up research, in which we seek exposure to issuers with attractive credit risks and aim to determine which securities in their capital structures provide superior relative value.
Our global approach, in which we invest throughout the US, Europe and the emerging markets, provides us with access to an expansive set of opportunities and sources of liquidity.
We believe that global, relative-value investing throughout the capital structures of issuers can deliver strong returns through the cycle.
This requires a broad mandate. By investing worldwide, we are exposed to more opportunities to exploit differences in valuation and potential return, and can better manage liquidity risk. Our top-down analysis assesses the return prospects of different regions and sectors, and informs our bottom-up research of companies. We aim to identify attractive issuers and, crucially, determine which bonds and credit-default swaps in their capital structures provide superior relative value.
Fraser Lundie
CFA, Head of Hermes Credit and Lead Portfolio Manager
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Fraser joined Hermes in February 2010 and is Head of Credit and lead manager on the Hermes range of credit strategies. Prior to this he was at Fortis Investments, where he was responsible for European high yield credit. Fraser graduated from the University of Aberdeen with an MA (Hons) in Economics; he earned an MSc in Investment Analysis from the University of Stirling and is a CFA charterholder. In 2017, Fraser joined the board of CFA UK, a member society of the CFA Institute. Having previously featured in Financial News’s ‘40 Under 40 Rising Stars of Asset Management’, an editorial selection of the brightest up-and-coming men and women in the industry, in 2015 Fraser was named as one of the top 10 star fund managers of tomorrow by the Daily Telegraph. In 2016, Citywire Americas named Fraser number one in their global high yield manager review, and InvestmentEurope and Investment Week both named the Hermes Multi Strategy Credit Fund top global bond fund at their respective 2017 Fund Manager of the Year Awards.