Total Return Credit

Management & Investment Process

  • Management

  • The investment team leverages high degrees of experience and knowledge within a disciplined investment process. Learn more about the Team.

    • Benjamin J. Santonelli

      Portfolio Manager

      • 17

      • Years Industry
    • John W. Sherman

      Assistant Portfolio Manager

      • 17

      • Years Industry
  • Investment Process

  • The strategy seeks to exploit inefficiencies in the middle market, lower-tier, and leveraged loan segments of the high yield market and prudently capture the significant illiquidity premium often available in such markets. Polen Capital Credit aims to identify mis-priced credit risk and construct a concentrated portfolio that can generate attractive returns relative to the amount of credit risk assumed.

    • Bottom-up Fundamental Research
      • Analyze entire company, not just an individual bond/loan tranche
      • 360-degree view of business – customers, suppliers, competitors
      • Identify sustainable competitive advantages
    • Cash Flow
      • Understand how a target company generates cash
      • Assess durability and sustainability of cash flow
    • Minimize Credit Losses
      • Calculate and continuously monitor company’s total enterprise value
      • Focus on loan-to-value and cash flow
      • Only invest in securities with appropriate margin of safety
      • ESG factors evaluated for each investment
    • Legal Protections
      • Understand contractual protections in debt agreements
      • Assess “waterfall of value” and downside scenarios
    • Portfolio Construction
      • Security selection drives performance
      • No macro bets or themes
      • Concentrated portfolios – 35 to 55 positions
      • Long-term investment horizon
      • Limited exposure to stressed/distressed securities
      • Capture illiquidity premium