Investment Approach

Apex manages its investment portfolios utilizing rigorous fundamental credit analysis. We began managing leveraged loan investments 12 years ago employing a proven and consistent approach to identifying investments with attractive risk-adjusted returns, while adhering to our tenet of capital preservation. Our experienced professionals operate under a collaborative and scalable process to construct highly diverse portfolios. Additionally, the senior portfolio team has succesfully managed investments through a variety of economic conditions and market environments.

Apex’s bottoms-up research is tempered with a top-down view of the industries in which we invest as seen over business and credit cycles. The portfolio management and research team also considers varied structural and legal characteristics of the loan assets that could impact expected returns. Lastly, our expectations for near term capital markets conditions round out the decision making process. Longstanding relationships with all leading leveraged loan dealers provide broad access to investment opportunities and trading liquidity.

Attentive portfolio optimization and investment monitoring are as important to performance as selecting the right investment opportunities. The dynamic process of searching for both overvalued and undervalued investments in our actively-managed portfolios maximizes the long-term performance of the funds. In addition, ongoing risk management identifies emerging problem assets and focuses the team on preserving principal. Among our oversight tools is a proprietary credit grading system and asset coverage analysis.

Underpinning Apex’s investment process is a robust and customized IT platform that encompasses portfolio management, credit research, trading, fund compliance, and investment performance. This systems support is an essential resource in the data intensive business of investing in leveraged loans and managing CLOs.
 

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