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Hudson Canyon’s institutional fixed income investment management style is best described as an active duration manager of investment grade (BBB or higher) securities. Factors that are considered when determining duration include: inflation trends, Federal Reserve policy, the overall trend in the economy, projected budget surpluses or deficits, and the U.S. balance of payments.
Depending upon the trend in interest rates and yield spreads, we also substantially overweight or underweight our portfolios relative to the four major sectors of the Barclays Aggregate Bond Index. Portfolio durations will generally range between + or – 30% of the Barclays Aggregate’s duration.
Annual turnover is typically 20% or less.
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