LIBOR Plus Total Return

An absolute return approach to credit investing aimed at providing long-term value.

Mirroring our Multi-Sector Total Return strategy, this alternative strategy – benchmarked to LIBOR – is comprised of emerging markets debt, high yield, global investment grade, and other debt instruments. To isolate the return profile of the overall portfolio, we hedge interest rate risk.

Quantitative research shows these non-core market sectors have historically low correlations to investment grade fixed income – offering distinct diversification benefits.

As with all Stone Harbor strategies, the firm’s global macroeconomic viewpoint and team approach drive the big picture thinking behind our investment process.

For our dynamically managed multi-strategy allocation portfolios, our team defines the tactical allocations among the asset classes during our weekly meetings. Seeking to maximize returns, sector-specialists manage each asset class allocation as a stand-alone portfolio.

Our well-defined, disciplined process leverages the expertise of all Stone Harbor portfolio managers and analysts. Our approach includes:

  • Quantitative tools to create a strategic asset allocation framework
  • Qualitative judgments to determine tactical sector weightings
  • Risk management from the perspective of relative return volatility and shortfall risk
  • Credit monitoring and a strong sell discipline

This strategy may be customized in terms of benchmark and major currency.