Credit and equity markets operate in information silos characterised by a lack of communication. This leads to dislocations between corporate debt and equity valuations.
The strategy is also able to exploit more general market dislocations. The combination of these provides for an abundant opportunity set through the cycle.
The investment mandate is highly adaptable to the economic cycle and operates different types of sub-strategies that can take advantage of different market environments. The approach means that Astaris is well equipped to take advantage of market crises if and when they occur.
The investment strategy operates across a continuum:
When valuations are stretched, the portfolio will employ investment strategies to avail of that opportunity set and then pivot to other investment strategies when valuations are more attractive. The combination of complementary sub-strategies provides opportunities to generate returns throughout the economic cycle.
Risk management complements the investment strategy and cross balance sheet research through the application of a highly disciplined, methodical and consistent process that continually evaluates and adapts.