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Global Long/Short Credit

A fundamentally driven global long/short credit strategy that strives to deliver a return profile you cannot buy in an index

  • Emphasis on fundamental analysis of fixed income instruments and the flexibility to adapt to varying market conditions; proven track record with an emphasis on capital preservation in down markets
  • Multi-faceted experience with cash and derivative credit trading dynamics
  • Portfolio Management team averages over 18 years of industry experience and has worked together for 9 years

Portfolio Managers (left to right): Itai Baron, Rick Dowdle, Norman Milner and Darren Carter

Investment Approach

  • Balanced, nimble portfolio designed to allow the team to adapt to changing market conditions
  • Portfolio is comprised of longs and shorts where the team has a specific view on the trajectory of the credit
  • The team seeks to marry its macro and fundamental research capabilities since the macro environment can overwhelm the fundamentals

Investment Process

Canvas the vast corporate credit universe

  • Global High-Yields Issuers
  • EM Corporate Issuers
  • Emerging Market Sovereigns
  • Investment-Grade Issuers
  • Global Lev. Loan Issuers

Seek to avoid undesirable companies utilizing “business screens”

  • Unfavorable Business Model
  • Structural Concerns
  • Levered Balance Sheets/Liquidity Concerns
  • Poor Cash Flow

Apply our macro analysis to further refine our universe of companies

Macro Considerations

Target favorable companies by prioritizing the main factors that we believe determine success

  • Favorable Macro Environment
  • Attractive Business Model
  • Positive Cash Flow
  • Sound Balance Sheets
  • Structure

Ongoing review of investment thesis, fundamentals and catalysts

Global Long/Short Credit Portfolio

Security Selection

  • Security selection based on proprietary, fundamental research
  • Typically favor large, liquid capital structures with multiple cash bonds, full CDS curve, listed stocks and options
  • Collateral valuation, catalyst assessment and risk analysis combine to construct the most attractive investment position across the capital structure
  • Anticipated “sweet spot”: BB secured and unsecured debt

Invest across the entire capital structure

Secured Bank Debt

Senior Unsecured Debt

Subordinated Debt

Convertible Debt

Credit Derivatives

Equity Derivatives

Literature

Materials

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Management Team

Norman Milner

Portfolio Manager

21 Years of experience

1 Year with firm

Biography

Rick Dowdle

Portfolio Manager

21 Years of experience

1 Year with firm

Biography

Darren Carter

Portfolio Manager

18 Years of experience

1 Year with firm

Biography

Itai Baron

Portfolio Manager

17 Years of experience

1 Year with firm

Biography

The team joined Neuberger Berman Investment Advisers LLC effective January 1, 2015. This material is intended as a broad overview of the portfolio manager's current style, philosophy and process. This material is presented solely for informational purposes and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment or strategy is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were, or will be, profitable. Any views or opinions expressed may not reflect those of the firm as a whole. All information is current as of the date of this material and is subject to change without notice. Investing entails risks, including possible loss of principal. Past performance is no guarantee of future results.

Neuberger Berman Investment Advisers LLC is a registered investment adviser. The "Neuberger Berman" name and logo are registered service marks of Neuberger Berman Group LLC.