Investment ApproachPrint

Logan Circle is primarily a bottom-up, fundamental research based investment manager. We rely on our in-house, proprietary research efforts coupled with nimble trading to build relative value driven portfolios with attractive risk/reward characteristics. We take a team approach to managing our clients’ portfolios, with ideas generated by portfolio managers, research analysts and traders alike. Our senior investment professionals have approximately 340 years of combined investment experience at an average of 21 years per investment professional.

Portfolio Management

Portfolio managers are primarily focused on synthesizing analyst and trading recommendations and are ultimately responsible for the implementation of the investment strategy, asset allocation, portfolio construction, and security selection. In addition to portfolio construction and assessing risk measures relative to the portfolio index and its peer group, the portfolio managers are responsible for providing industry and sector analysis and relative value assessments across all industries.

Proprietary Research:

Risk appropriate and investable ideas undergo a review by our research teams, which incorporate quantitative, fundamental, and qualitative analysis. In-depth fundamental research is the cornerstone of our investment process. As such, we place great emphasis on the quality of our research efforts and employ significant human resources across the firm. Our fixed income strategies leverage a deep team of credit research, structured products, municipals and sovereign and local markets analysts. Our structured products and municipals analysts serve dual roles as traders of those securities due to the differing nature of structured products and municipal bonds, and the vastly different collateral and cash flows associated with them. Analysts are a shared resource as our Research team is organized by industry and asset class, rather than by product. We believe that without geographic or quality restrictions, our research analysts are well equipped to seek out relative value across our respective investment universes.

Qualitatively, we emphasize bottom-up fundamental research focusing on management review, capital structure considerations, covenant analysis and key credit risks. Quantitatively, during our credit analysis process, each analyst constructs a comprehensive proprietary cash flow model tailored to the specific company and industry for which he or she is responsible.

We place considerable emphasis on the approach management takes in navigating and operating through credit cycles, while understanding that different businesses have varied tolerances for absolute indebtedness given the volatility (or stability) of cash flows and required capital intensity of the operations. If our team is not comfortable with both the strength of the business as well as the management team, we eliminate these credits from our investible universe (pending future changes).

The vast majority of all research utilized in our decision making process is generated internally by the portfolio managers and research analysts. We utilize research to measure sentiment / consensus, and as a source of data, information and market intelligence. Research obtained from outside sources is not generally pivotal in our analysis. We value many different data sources in building our mosaic on a particular company. We use information for data gathering and gauging market sentiment.

Trading

Trading is responsible for establishing and nurturing the relationship between the firm and Wall Street. Each trader is a specialist within a specific area. The traders are responsible for monitoring supply/demand factors, historical value trends, new-issue opportunities, and dealer relationships. It is the responsibility of the trader to compile and distribute relative value and technical market information to the portfolio manager and research analysts at various stages of the process.

We are active traders who seek to add value to our clients’ portfolios by trading around positions which may move due to market technicals, rather than company/issuer fundamentals.

Risk Management

The goal of Logan Circle’s independent Risk Management team is to connect the quantitative risk management tools, which have been developed internally, with the seasoned qualitative judgment and analysis from experienced investment professionals. This element of the risk management function exists at the correlation point between qualitative judgment and quantitative indicators, in order to assist the portfolio managers in their assessment of the risk in each of their investment ideas.