Management & Investment Process

• Management

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

  • David J. Breazzano

    President, CIO & Co-Portfolio Manager

    • 38

    • Years Industry
      Experience

  • Benjamin J. Santonelli

    Co-Portfolio Manager

    • 15

    • Years Industry
      Experience

  • John W. Sherman

    Co-Portfolio Manager

    • 14

    • Years Industry
      Experience

• Investment Process

• The strategy seeks to exploit inefficiencies in the middle market and lower-tier segments of the high yield market and has the flexibility to invest across the capital structure. DDJ aims to identify mis-priced credit risk and construct a portfolio with a significant yield advantage relative to the applicable benchmark.

  • 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
    • Construct concentrated portfolios – overweight high confidence positions
    • Flexibility to invest across the capital structure - bonds and bank loans
    • Long-term investment horizon
    • Limited exposure to stressed/distressed securities
    • Monitor to provide for appropriate diversification and liquidity