HYDE Credit’s recommended portfolios have historically outperformed the HY Global Index on a rolling 3 years period.
We selected a 3 years rolling period due to the fact that most of our portfolios display at any time a 3 years average maturity.
Our strategy produces its best returns in down markets, when macro conditions supporting the credit trend come to an end and defaults spike, forcing investors to become more selective.
We identified 5 past Exogenous Events that best represent the potential outperformance of our value strategy vs the market:
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Q4 2018 China-US trade war.
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H1 2020 Covid-19.
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H2 2021 Inflation surge in G7, rake hike expectations and Chinese Real Estate bubble burst.
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Q1 2022 Beginning of the Ukrainian war.
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Q4 2024 Beginning of the Israeli–Palestinian conflict.