Business Details
Trusted Investment Advisers in Santa Barbara
Peritus Asset Management has established itself as a leader in active high yield debt investing, leveraging decades of experience to deliver value-driven strategies for clients. Our team of seasoned professionals focuses on identifying undervalued securities through rigorous fundamental credit analysis, prioritizing businesses with essential services, strong cash flow, and manageable capital structures. We specialize in unconstrained investing, avoiding arbitrary restrictions like credit ratings to capitalize on market inefficiencies. Our disciplined approach combines high tangible income generation with capital appreciation potential, supported by a flexible allocation to floating rate loans and new-issue bonds.With a commitment to transparency and client-centric solutions, we maintain a focused, diversified portfolio tailored to navigate rising rate environments while minimizing duration risk. Our expertise in credit evaluation and market dynamics positions us to outperform passive strategies, delivering alpha through active management and strategic risk mitigation.
Services
High Yield Bond Management
Portfolio Consulting
ETF Advisory
Market Research
Risk Assessment
Highlights and features
- We implement a patented value-based investment process for high yield debt
- Our team has over 20 years of experience in active fixed income management
- We offer unconstrained investing without reliance on credit ratings
- We maintain a disciplined focus on fundamental credit analysis
- We provide transparent portfolio construction with clear risk management
Services
High Yield Bond Management
Our high yield bond management focuses on undervalued securities through fundamental analysis of credit quality and market positioning. We target companies with essential services and strong cash flow, prioritizing capital preservation while generating income. Our approach combines active trading with strategic holding periods to capitalize on market inefficiencies and secondary market discounts.
Floating Rate Loan Investment
Floating rate loan investments provide income stability through LIBOR-based pricing while mitigating interest rate risk. We selectively allocate to loans with favorable risk-return profiles, avoiding overleveraged positions. Our strategy leverages market dislocations and repricing opportunities to enhance portfolio yield without excessive duration exposure.
New Issue Bond Allocation
New issue bond allocation enhances portfolio liquidity through freshly issued securities with stable pricing. We capitalize on post-issuance stability to rotate holdings while maintaining income generation. This strategy balances short-term holding periods with long-term value opportunities in the primary market.
Portfolio Diversification
Portfolio diversification balances focused exposure with broad market participation across 50-100 holdings. We optimize sector allocation while avoiding forced diversification, maintaining flexibility to capitalize on credit opportunities. Our approach balances duration management with yield optimization through active position sizing.
Rising Rate Strategy
Rising rate strategies employ shorter duration securities and floating rate instruments to mitigate interest rate sensitivity. We combine high coupon bonds with active credit rotation to maintain performance during rate increases. Our approach leverages historical market behavior to preserve capital while capturing income opportunities in volatile environments.
People
Heather Rupp
Portfolio Manager
Heather Rupp brings over 20 years of high yield market experience, specializing in active management strategies. She has developed proprietary credit analysis frameworks and leads portfolio construction efforts while contributing regular market commentary.
Ron Heller
Senior Analyst
Ron Heller contributes extensive market analysis expertise with daily commentary on high yield trends. He manages research operations and provides analytical support for investment decisions across fixed income products.
Questions
What differentiates Peritus' investment approach from index-based funds?
We employ active management without index constraints, focusing on undervalued securities through fundamental analysis rather than passive tracking.
How does Peritus manage interest rate risk?
We utilize shorter duration bonds, floating rate loans, and active credit rotation to mitigate rate sensitivity while maintaining income generation.
What market sectors do you specialize in?
We focus on cross-sector opportunities in non-investment grade debt, prioritizing credit fundamentals over rating agency classifications.
How do you handle portfolio liquidity?
We maintain liquidity through strategic new-issue allocations and secondary market trading while avoiding forced sales of undervalued positions.
What is your approach to credit analysis?
We conduct proprietary fundamental analysis focusing on business essentials, cash flow, and asset values rather than relying on third-party ratings.
How do you adapt to changing market conditions?
Our flexible strategy allows dynamic allocation between bonds, loans, and new issues while maintaining core income generation objectives.
