Strategy

High-Conviction, Actively Managed Bond Investing

At Cavalen Asset Management, we employ a high-conviction, benchmark-unconstrained approach to bond investing, designed to generate superior risk-adjusted returns. Our strategy integrates fundamental credit selection, dynamic macro positioning, and disciplined risk management to capitalize on global bond market opportunities while preserving capital.

Investment Approach

Our process is built on three key pillars:

• Conviction – We focus on 50-75 undervalued strategic credits, leveraging our proprietary Credit-Adjusted Valuation (CAVs) model to identify mispriced opportunities with strong return potential.

• Active Management – We dynamically adjust duration, FX exposure, and credit positioning to optimize portfolio outcomes across different market environments.

• Value-Driven Selection – Our portfolio emphasizes investment-grade and developed markets, integrating bottom-up credit analysis with a tactical macro overlay.

How We Generate Returns

• Strategic Credit Selection – Identifying bonds with attractive relative value and clear catalysts for price appreciation.

• Tactical Macro Overlay – Adjusting rates exposure, FX positioning, and credit hedging to navigate macroeconomic cycles.

• Risk Management – Implementing disciplined portfolio construction techniques, including dynamic duration management, liquidity assessment, and hedging strategies to mitigate downside risks.

Our investment solutions cater to professional and institutional investors seeking high-conviction, actively managed bond strategies.

 

Our core offerings include:

• Strategic Bond Fund Strategy – Our flagship strategy, designed primarily for investors such as wealth platforms and private banks, offering dynamic bond exposure with a disciplined, value-driven approach.
• Large Segregated Portfolios – Tailored solutions for institutional investors, including pension funds and sovereign wealth funds, who require a bespoke fixed income strategy aligned with their specific mandates.
• Separately Managed Accounts (SMAs) – Custom portfolio solutions for hedge fund investors seeking specialised, high-conviction bond strategies within a flexible mandate.

 

At Cavalen Asset Management, we remain committed to delivering institutional-quality bond investment solutions that align with the evolving needs of professional investors.