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STW operates on the premise that undervalued bonds will outperform overvalued bonds, and purchases
bonds it believes are undervalued. When the bonds become fully priced, they are exchanged for
better-valued issues. There is no overweight/underweight or closet indexing. If we don’t like
a bond or a sector, we avoid it. If we really like a bond or sector we buy all we can, limited only
by guidelines and prudence.
Central to our philosophy is that major imbalances in the relationships among individual bonds
or sectors are caused by the ebb and flow of supply and demand/fear and greed. These are far
more powerful factors than changes in fundamentals of investment-grade bonds. They are the
causes of the market anomalies we capture.
The firm uses a team approach to managing portfolios. We stick to investment-grade bonds with no
market timing and no currency speculation. We are a true value-oriented firm and are not bound by
benchmark content for any assignment.
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