Investment Philosophy

The goal of Alpha's Targeted Duration fixed income philosophy is to maximize return at a specified level of risk. Each fixed income portfolio is tailored to meet the goals and objectives of the client's through a disciplined approach of active bond management. We rely upon our detailed risk analysis of the following to add value to our portfolio returns:

• Sector Analysis - We believe that history repeats itself. Accordingly, an extensive understanding of each bond's entire history throughout various secular/cyclical market trends allows us to identify attractive sectors in which to invest.

• Yield Curve Analysis - We believe twists in the yield curve (i.e. steepening or flattening) can provide value-added trading opportunities that can be implemented without altering the overall interest rate exposure of the portfolio.

• Credit Analysis - We believe this traditional fixed income tool ensures the maintenance of quality in our portfolios.

• Duration Analysis - We believe duration is the best measure of a portfolio's exposure to interest rate risk. Duration analysis is used to quantify the impact of interest rate movement on the portfolio's return.

• Yield/Convexity Analysis - We believe fully understanding the yield/convexity tradeoff, and the impact that market volatility has upon that relationship, enables us to identify the undervalued and overvalued bonds.