Letter to Shareholders Value Bonds Q4 2014

“Factor-based investing [in corporates] is a strategic decision, and Sparinvest is convinced that the Value Bonds strategies will continue to generate long-term alpha through the market cycles to come.”
In their Q4 2014 Letter to Shareholders, Sparinvest’s Value Bonds team look back at a challenging year for High Yield and Emerging Markets, but a stellar one for Investment Grade. They also look at prospects for a ‘silver lining’ for High Yield from recent problems in the energy sector: ‘Increased M&A activity in the energy sector can be a major alpha driver.’