Investment Philosophy
With over 75 years of combined investment experience, Black Knight Asset Management understands the vital importance of observing fundamental and disciplined investment processes that incorporate diversified fixed income alpha generating strategies.
We believe that long-term investment success emanates from prudent decision-making characterized by independent thought and collaborative decision making. Black Knight combines forward-looking processes with both qualitative and quantitative analyses to achieve the best possible outcome.
Black Knight employs a top down/bottom up approach that begins by determining the global macro-economic factors impacting fixed income markets worldwide. This global view helps determine sector weightings and is reflected both in short- and long-term strategies implemented in the portfolio.
Recognizing that different clients have different investment objectives, Black Knight initiates the investment process by examining and evaluating client goals and benchmark guidelines. Next, we make decisions regarding the appropriate portfolio duration, yield curve position and sector allocation.
We research all sources of alpha, but focus on those with the greatest probability of success, namely security selection, sector allocation and sub-sector weights. These criteria form the basis of the bottom up portion of our investment process. We buy the individual securities that we believe represent the best value available in the market place. We overweight sectors we believe are undervalued, while underweighting sectors that we believe are overvalued.
The combined top down/bottom up process helps to achieve a portfolio that is consistent with our clients' investment objectives while protecting capital and providing above-market investment returns.
