Global absolute return fixed income specialists
About
Over the last 3 years Fortlake Asset Management have been named the top performing multi-faceted credit hedge fund(s) globally (Hedge Fund Journal, eVestment), across their three daily liquid funds, as well as the best-performing fixed income manager in Australia. Fortlake uses a variety of silos to add value and reduce correlations to traditional asset classes. Setting strategic priorities across its portfolios which is reflected via active tilts across markets and credit quality within the relevant silos, which in turn provides detailed insight to better understanding correlation and risk. Portfolio construction additionally provides high quality return streams through multi-faceted allocations to Government securities, investment grade credit, curve and inflation.
People
Fortlake was founded by Dr Christian Bayles, after leaving UBS where he was Head of Derivative Strategy and Credit Trading. At UBS he managed over $26 billion and was responsible for sector strategy and the development of ESG frameworks within credit markets. The 4-person Fortlake team are focused on and have experience in credit default arbitrage, harvesting defaults on the short side across high-yield and Investment Grade credit markets in the US and Europe.
Investment Philosophy
They believe fixed income portfolios must consider the impact of inflation on nominal returns. Fortlake uses a variety of silos to add value and reduce correlations to traditional asset classes, utilising its capability within the fixed income market. Fortlake is also regarded as a specialist in the default arbitrage market – a negative correlation market that actively harvests defaults across high yield and investment grade markets in the US and Europe.
