With only a few days left until the first half of the year is behind us, the Bramshill team reflects on our top 3 most viewed blog posts from 2017.
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2017 MAY PORTFOLIO COMMENTARY
Market Insights from Bramshill Investments: The Bramshill Income Performance Strategy returned -0.64% for the month of May, putting YTD returns at +1.60% net. With the backdrop of a robust global economy and the Federal Reserve tightening policy, our view has been that interest rates would gradually move higher in 2017.
The main detractors in our portfolio for the month came from our Treasury hedge (approximately -35 bps) and our cyclical energy exposure (approximately -50 bps). Despite the recent U.S. Treasury rally, we continue to favor taking credit risk over rate risk in our portfolio. We maintain a very short duration of 1.46 years with a current yield of 4.74%. We believe long-term U.S. interest rates are currently at the low end of a 50 bp range.
MEET THE TEAM | STEPHEN SELVER: CEO
Work hard in silence, let your success be the noise.
Q&A WITH BRAMSHILL INVESTMENTS: ALPHA GENERATION
On our last Bramshill Investments quarterly conference call, an investor asked:
Q: Are you getting more alpha from the calls you’re making on a particular asset class versus the credit work that you’re doing on an individual issue?
A: Stephen Selver – We have done attribution analysis, going back on the portfolio over eight years, and we have run it two different ways. Bramshill's Income Performance Strategy will only invest in five asset classes: investment grade and high yield corporate bonds, US Treasury bonds, municipal bonds and preferreds. We have the analysis whereby if you just took a 20% allocation, even-handed across those five asset classes for the past eight years, we’ve run our strategy's returns on a monthly basis against that 20% allocation to each of the asset classes’ portfolio.