Our disciplined and robust process, attention to risk management, independent research and integrated team approach are all vital components.
We explore high-yield and investment-grade opportunities worldwide.
We search the capital structures of issuers for instruments that offer superior relative value.
Security selection can be equally as important as issuer selection in identifying strong relative-value opportunities
A skilled, integrated team whose principal members have worked together since 2004.
Exposure to the team’s best long-only investments, combined with strategies that defend against market volatility, should generate positive absolute returns through the cycle. To achieve this, the portfolio is split into return-seeking and defensive buckets:
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.
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.
