PENN Capital Launches Short Duration High Yield Strategy
PENN Capital Launches Short Duration High Yield Strategy
April 11, 2011
Philadelphia, PA – PENN Capital Management Co., Inc. announces the launch of its newest product, the PENN Short Duration High Yield strategy. The product’s inception was April 1, 2011 with initial funding from PENN, firm employees and current clients. There has been strong consideration by several institutional relationships that is expected to lead to new allocations in the near future.
The launch of the Short Duration portfolio comes as a natural evolution of PENN’s core competencies as a high yield manager for over twenty years. The strategy was developed in collaboration with clients and the consultant community to satisfy investor demand for yield without taking on undue credit and interest rate risk. PENN is well equipped to analyze the credit risk associated with sub-investment grade debt and currently manages $250 million of short duration paper spread among its traditional high yield portfolios.
“Historically low interest rates have left many of our clients looking for ways to enhance the returns on their short-term assets without taking on much more risk,” says Peter Duffy, Senior Portfolio Manager and Partner at PENN. “Given our expectations for continued strong U.S. corporate fundamentals and refinancing activity, moving down in credit quality but staying shorter on the curve makes sense in order to capture additional yield and protect against rising longer term rates.”
The Short Duration strategy will focus on Double- and Single-B bonds and loans under three years to maturity.
PENN Capital Management Company, Inc., founded in 1987, is an independent, nationally recognized, 100% employee owned investment management firm located in Philadelphia, PA. PENN maintains a fully integrated credit and equity research process and emphasizes Complete Capital Structure Analysis® when analyzing investment opportunities. PENN has over $6 billion in assets under management and specializes in high yield fixed income and micro-to-mid capitalization equity portfolios for institutions and individuals.
