November 2021 - The Benefits of SMAs
November 01, 2021
An investment in a real-estate timeshare and the purchase of a mutual fund or ETF have more in common than it may at first appear. The primary incentive, in both arrangements, is the opportunity to gain the most important benefits of full ownership of an asset via a fractional arrange …
October 2021 - Q3 2021 Update
October 01, 2021
The purpose of this month’s letter is to provide an overview of Roosevelt Capital Management’s (“RCM”) Q3 performance. In addition, we also hope to provide some context on why we believe the popular opinion that “bonds are a bad investment right now” can coexist alongside our ongoing …
September 2021 - The Benefit of Optionality
September 01, 2021
Several months ago, Mike and I wrote a newsletter on what we believe are the merits of Roosevelt Capital Management’s (RCM) short duration high yield corporate bond strategy in today’s market environment. In that paper, we argued that our product avoids most of the pitfalls of the cur …
August 2021 - Uncertainty & Decision Making
August 01, 2021
“There are two kinds of forecasters: those who don’t know, and those who don’t know they don’t know.” John Kenneth Galbraith
July 2021 - First Half 2021 Update
July 01, 2021
We started writing these monthly letters with two objectives. First, we wanted to create a forum for providing regular updates on our own approach to investing in fixed income securities in order to better educate current and potential clients on how and why we are making the investme …
June 2021 - Introduction to Forward Rates
June 01, 2021
Successful fixed income investing requires ongoing tactical and strategic analysis. At Roosevelt Capital Management (“RCM”), tactical considerations revolve almost entirely around our perspective on the liquidity and solvency of the issuers of individual securities, two topics we have …
May 2021 - Introduction to Breakeven Rates
May 01, 2021
Stories about the rise of post-pandemic inflation are everywhere right now. As with so many things in the news these days, however, much of the information being conveyed is politically motivated, superficial, or just plain wrong. Of course, it is one thing to pontificate about where …
April 2021 - The Merits of Short Duration High Yield in Today’s Investment Climate
April 01, 2021
Fixed income investors are taking a beating these days as evidenced by the Barclays Aggregate Q1 2021 performance of -3.37%. While there are myriad reasons for this situation, they can pretty much all be summed up in a recent comment by Bridgewater’s Ray Dalio who said, “Bond markets …
March 2021 - Understanding Modified Duration
March 01, 2021
If you spend any time in the fixed income world, you are likely to come across a bond statistic called “modified duration”. If the term is new to you, the definitions online or in articles are often confusing because the actual calculation is somewhat complex and typically assumes som …
February 2021 - Interest Rate Risk Enters the Equation
February 01, 2021
One of the recurring themes in our many conversations with both existing and prospective clients over the past six months has been the fact that investors were not being compensated for taking on interest rate risk. That is all starting to change, and it is starting to change quickly.