Andy Seaman, a partner and fixed-income portfolio manager at Stratton Street Capital, says the Asia-focused funds he manages with Mark Johns are continuing to hold high-grade sovereign and large corporates in the region, but with proprietary research showing that out it is not until six months after a recession ends that high-yield outperforms government debt.
HW: What is the background to your company?
AS: Stratton Street Capital was founded in August 2000 as a London-based alternative investment advisor specialising in Asian funds. These can be divided into three distinct but complementary styles with separate fund manager teams.
I work with Mark Johns, also a partner and fixed-income portfolio manager, on the fixed-income funds, which consist of the Stratton Street PCC Asian Bond & Currency Fund, launched in December 2004, and with the Stratton Street PCC Renminbi Bond Fund, launched in December 2007. Mark and I also advise the New Capital Total Return Bond Fund managed by EFG Private Bank in London.
We launched the Asian Bond Fund in 2004 as we had noticed there were many credit-related opportunities in Asia, but that the region as a whole slipped through the net with more index-orientated investors and managers. We specialise in investing in sovereign, investment-grade and high-yield debt throughout the region.
Our definition of Asia also includes Turkey, Russia and everything east including Australia and New Zealand. We have now managed money together for over 10 years and have a very strong understanding.