Our Short Duration High Yield strategy seeks to capture the current income of the high yield market with substantially less volatility through the consistency of monthly returns and reinvestment. The strategy principally invests in a diversified portfolio of high yield debt securities issued by companies domiciled or listed in the US that are expected to be redeemed through maturity, call or other corporate action within three years. The objective is to generate a high level of current income while also experiencing lower volatility than the broader high yield market. Generally, this absolute return strategy is not managed against a benchmark.
Created by SKY Harbor’s senior leadership in 1992, the strategy produces a high level of natural turnover, thereby affording portfolio managers continuous opportunity to reinvest and optimize portfolios for the current market environment. This approach may be particularly useful during periods of market stress or when interest rates are rising.
SKY Harbor offers separately managed accounts in this strategy, a limited partnership for qualified US investors, and serves as sub-adviser for the Westwood Short Duration High yield fund, an open-end US mutual fund. For fund investors outside the US, please visit SKY Harbor Global Funds.