Pecora Manning & Napier pursues a ‘bottom-up’ investment strategy that focuses on identifying securities that display steady or improving fundamentals while avoiding securities with deteriorating fundamentals, including potential for default.
The approach involves maintaining a portfolio with between 50-100 holdings, each occupying a position of approximately 1.5% to 2% of the overall portfolio.
While the strategy does not impose restrictions on maturity or duration, the anticipated investment horizon is 3-6 years. The portfolio composition allows for a range of 0%-20% to be allocated to investment-grade securities, while the remainder, 80%-100%, is dedicated to high-yield securities.