Investment Philosophy

A new direction on an investor's search for yield.

Investment Philosophy

Srathbridge’s philosophy and process provides our clients with yield-enhancing solutions. The investment products that investors have traditionally relied on to provide stable income (such as government bonds), now provide investors with very little cash flow. The solution for many investors in the “search for yield” has been to allocate capital to higher yielding, often substantially riskier asset classes. While we agree yield is an essential consideration for every investor, not all yield enhancement strategies offer the same risk/return benefits. Strathbridge provides alternatives to the traditional fixed income investments and focuses on increasing income in these unique market environments.

The Philosophy

The Strathbridge investment philosophy focuses on providing superior equity products that utilize our proprietary investment process, while providing excellent ongoing customer service. Across all Strathbridge funds we leverage our team’s extensive knowledge and experience in the derivatives market to utilize option overlay strategies that mitigates portfolio volatility and generates additional income for investors.

The Process

The firm’s proprietary investment strategy, Strathbridge Selective Overwriting (“SSO”), has been developed and refined over many years by our team of senior portfolio managers that have been working together for over a decade. The combination of both Active Stock Selection and concentrated equity portfolios (typically 20-30) enable us to leverage our best ideas. By combining a top-down macroeconomic perspective with a fundamental approach to stock selection and risk management, our funds aim to deliver enhanced equity yield solutions. We overlay in this process a unique risk management perspective by using conservative option strategies.