Investment Process

Managing credit products requires a systematic, disciplined investment process that reacts quickly to changing conditions.

The specific steps in our investment process are as follows:

Investment Sourcing
Unlike other asset classes, in which securities are traded on an exchange, the Senior Loan market is a dealer market in which relationships and longevity are important for continued and favorable access to investment opportunities. Members of the Four Corners team have been active participants in the Senior Loan market since inception. Four Corners has longstanding relationships and daily contact with the major underwriters and market makers of Senior Loans, which provides Four Corners with favorable access to assets.

Initial Credit Screening
As a result of its extensive experience and relationships in the Senior Loan market, Four Corners has the opportunity to review many investment opportunities in both the primary and secondary markets. A critical step in the investment process is the early screening of investment opportunities and identification of those that are likely to meet our risk-return objectives.

Portfolio Management
Four Corners employs top-down, macroeconomic analysis to develop industry views. We continuously evaluate macroeconomic and industry trends in an attempt to avoid those industries and issuers that are likely to experience excess volatility or otherwise fail to deliver acceptable risk-adjusted returns. We also systematically size every position based on default, recovery and liquidity estimates to achieve broad diversification and manage issuer and industry concentrations.

Credit Analysis
Detailed credit analysis is a fundamental and critical component of Four Corners’ investment process. Every credit undergoes detailed analysis of cash flows, collateral, management, ownership, liquidity and transaction terms. Risk analysis identifies key risk factors that are tracked continuously.

Investment Monitoring
Ongoing analysis is conducted of available and relevant information on industries, sectors and individual borrowers. Financial information, price changes (loan, bond and equity), ratings, news, etc. are tracked on a real-time basis.

* The information contained herein does not constitute a distribution, an offer to sell or the solicitation of an offer to buy any securities or investment services. Past performance is not intended to imply nor should it be considered to be a promise or guarantee of future performance. Funds managed by Four Corners may fail to achieve stated investment objectives. Investors should consult with their brokers or investment advisers prior to considering an investment in any Four Corners products.