Alternative Investment Awards 2017 35 Capital Company: Stratton Street Capital Contact: Benjamin Day Email: [email protected] Address: 200 Aldersgate Street, London, EC1A 4HD Phone: 020 7766 0888 Web Address AI170035 Stratton Street Stratton Street is a specialist global credit manager authorised and regulated by the FCA. We profile the firm to find out more. Established in 2009, Stratton Street Partners Andy Seaman & Mark Johns have been working together for 20 years; when their respective firms merged in 1997. They have the enviable track record of producing positive returns in the Funds they managed during the large market downturns of 1998, 2002 and 2008. They have built an experienced team of seven investment professionals and one macro consultant based in NYC. Since inception Stratton Street’s global investment grade composite has returned above 7.5% annualised. Currently the firm manages $1.3bln in assets under management advice across global and regional strategies. At the heart of its investment philosophy is a unique way of looking at the investment universe, focussing on long-term active returns utilising a systematic and repeatable process. Traditionally investors have segmented the world into developed and emerging economies, whereas Stratton Street looks at creditors vs. debtors. “Many so called ‘developed’ countries have amassed substan- tial debts and are in fact much riskier than is often perceived.” explains Partner & Chief Investment Officer Andy Seaman. “Conversely, many countries classified as ‘emerging’ have strong fundamentals, low levels of government debt, high credit quality and incomes well above those of many “developed” countries.” Net Foreign Asset (NFA) analysis is the primary long-term driver of country and currency returns. The analysis that Stratton Street utilises takes the cumulative current account (adjusted for valuation effects) in the entire wealth of a country (across government, corporations and households) and divides that into GDP to generate a ranking. “Credit Markets are undoubtedly inefficient, which is great for true active managers like Stratton Street,” explains Head of Sales & Busi- ness Development Ben Day. “By combining our unique NFA analysis, proprietary global macro and relative value models we are able to focus our credit research and construct portfolios of undervalued credits that fit our overall macro view. Our ability to rotate credit exposure through market cycles gives us an edge over the competition. We do not believe in building portfolios based upon index weights given the inefficient in- dex construction in the fixed income space. Instead we focus on relative value across the entire credit spectrum.” “Whilst there are pockets of the global economy picking up, our view is that both growth and inflation will remain relatively benign for the fore- seeable future” explains Mark Johns, Partner and Fund Manager. “Our view remains that the yield curve will flatten and we favour positioning at the long end of the yield curve in high grade undervalued credits. Both Fund offerings, albeit with differing risk / reward characteristics are designed to protect on the downside as well as capture upside through identifying heavily undervalued credits.” Best Fixed-Income Fund Advisory Firm - UK & Best APAC Fixed-Interest Fund (Since Inception): Renminbi Bond Fund