Avebury Asset Management
Principals: Michael Daley, president and CIO; Stephanie McClennon: vice president.
Style: Global fixed-income manager
AUM as of June 30:
Three-year annualized performance: 10.95%
Benchmark (J.P. Morgan Global Government): 8.91%
Three-year alpha: 1.54
Michael daley bought the institutional global-fixed income business and clients of Investec Guiness Flight in 2000, after running the portfolios for Investec from 1994 till 2000. He then built his own team, which continues using the strategy he had used at Investec.
The fund invests in major corporate and government bond markets mostly in the United States, focusing on lower quality corporate bonds, those with BBB ratings. "We've been finding value in corporates with longer maturity, of about eight years and with lower quality," Mr. Daley said. "We've also found good returns on corporates from emerging markets such as Turkey and Brazil. Another part of the strategy is to use currency overlays, primarily from Asia and Eastern Europe," he said.
The portfolio owns issues from Cox Communications Inc., Monsanto Co., BT Group PLC and Lockheed Martin Corp.
Jeffrey Slocum, president of Jeffrey Slocum & Associates, Minneapolis, said: "I like Michael (Daley) because he is a nice complement to the U.S.-centric view of fixed income, which is that there's just a U.S. market. He's more global. He's also refreshing, because most fixed-income managers are so obsessed with their benchmark; going outside the line makes them wet themselves in terror. ... He's more inclined to play to win compared to keep from losing."