To achieve superior performance results through the active management of fixed income assets (primarily municipals, corporates and U.S. treasury bonds) that adhere to portfolio guidelines and risk parameters.
All decisions will be based on our interpretation of market fundamentals and trends, and are tailored to the specific needs of each portfolio.
The municipal market is a large, complex market that has approximately 50,000 different issuers and approximately one million unique securities. We believe that an active trading approach requires knowledge of the varying characteristics of each investment to navigate the highly fragmented market. Hexagon Asset Management finds value through our deep understanding of multi-dimensional trading relationships in the market. Our approach endeavors to look at various aspects including:
CREDIT FOCUS & RESEARCH
Focus on single-A or better rated securities, using research and credit analysis in our investment selection. Analytics may be utilized to identify credit spread differences.
Use hedging techniques (i.e., rate locks, swaps and futures) to manage interest rate and curve risk. These strategies may be used opportunistically in the portfolio when comparing long positions versus U.S. Treasuries, corporate securities and synthetics.
DISCIPLINE & ESG COMMITMENT
Utilize a disciplined approach to market entry points. Strategically look to exit trades based on our understanding of how the behavior of municipal buyers changes, and could provide incremental return to the portfolio. Committed to investing responsibly, and incorporate Environmental, Social and Government principles in our investment process (i.e., green bonds and renewable energy bonds).
Able to source investments through our established relationships with national and regional dealers that market municipal and corporate securities. Leverage technology to access various distribution platforms.
Hexagon Asset Management is a New York based investment management firm. Darren De Risi and Scott Harris, our Co-Founders / Portfolio Managers, have over thirty years of combined investment and trading experience in tax-exempt and taxable securities.
We have long-standing relationships throughout the municipal bond industry, and are experienced in multiple facets of the municipal business -- origination, trading, underwriting, sales, derivatives, and tender option bond program structuring. We have extensive knowledge of tax-exempt and taxable bond buying strategies, and can identify factors that impact supply (i.e., new issues and dealer inventories) that can provide the primary market investment and trading opportunities.
Darren and Scott have a keen sense of value across the entire yield curve, and can invest as opportunity presents, but will primarily aim to maximize duration and absolute total return.