1. Advisory Services
- Based on our Model Portfolios (USD, EUR)
- Active advisory to clients’ specifications and needs
- Choice of Flat fees or Performance-only
- Access to all researched securities via web-based tool
- Active research advisory 24/7
- Subject to VAT for EU-based entities
- Active advisory to clients’ specifications and needs
- Choice of Flat fees or Performance-only
- Access to all researched securities via web-based tool
- Active research advisory 24/7
- Subject to VAT for EU-based entities
2. Separate Managed Accounts
- Based on our Model Portfolios (USD, EUR).
- Performance-only fee structure possible
- Performance based on realized cash flow or mark-to-market
- Leverage is possible (client decision)
- Not subject to VAT
- Performance-only fee structure possible
- Performance based on realized cash flow or mark-to-market
- Leverage is possible (client decision)
- Not subject to VAT
3. AIF Luxembourg-Based Investment Fund(s)
- Management Fee + Performance Fee (MtM, High Watermark)
- Approximately 100 positions.
- Buy-and-hold to maturity
- No leverage
- AIF, quarterly liquidity
- Approximately 100 positions.
- Buy-and-hold to maturity
- No leverage
- AIF, quarterly liquidity
THE SERVICE
- Advisory Services is a regulated business offered through HYDE Credit Ltd____
- The service is based on HYDE’s Model Portfolios
- It is tailor-made to clients’ specifications and needs
- Access to all researched securities via web-based tool
- Active research advisory 24/7
FEE STRUCTURE
Choice of Fixed Monthly Consultation Fees, or Performance Fee Only:
- Our performance fee only formula implies no upfront fixed costs, and a performance-based only fee structure
- The formula is Realized Cash Flow-driven
- This ensures full alignment of interest between client and manager
DESCRIPTION
- The service is based on HYDE’s USD and EUR Model Portfolios
- The Client states her/his risk profile preference
- The Analysts team prepares modified portfolios for consideration
- Eventually, a personal consultation with our analyst team is scheduled, to achieve the final investable portfolio
- Continuous monitoring post acquisition is included
WHO IS IT DESIGNED FOR
Designed for Private investors or Family offices looking to maintain full control on their investment process, but in need to outsource their research requirements and to receive professional advice on how to meet their in-house investment objectives
THE SERVICE
- Separate Managed Accounts is a regulated business offered through HYDE Credit Ltd____
- The service is based on HYDE’s Model Portfolios
- It is tailor-made to clients’ specifications and needs
- Active Portfolio Management
- Leverage is possible (it is a client decision)
- Not subject to VAT
FEE STRUCTURE
We are confident in the ability of our team to deliver high quality returns through avoidance of defaults; hence, we can propose a performance-only fee structure based either on a mark-to-market approach or on a cash flow generation-based approach.
The time horizon for this type of service is a rolling 3 years portfolio turnover.
DESCRIPTION
- The service is based on HYDE’s USD and EUR Model Portfolios
- The Client states her/his risk profile preference
- The Analysts team directly manages Client’s funds through a PoA on their portfolio
- Continuous Monitoring and quarterly reporting post acquisition is included in the service
WHO IS IT DESIGNED FOR
Designed for investors who are looking to allocate part of their portfolio to the High Yield space and are looking for a trusted external manager with solid track record to manage the full investment cycle.
Minimum investment portfolio 5mm EUR + 5mm USD due to minimum individual investments (most individual bonds’ minimum purchase ticket is 100k-200k).
PRODUCT
AIF Luxembourg-based Investment Fund(s) is an Alternative Investment Fund fully managed by HYDE Credit Ltd
STRATEGY
The Fund adopts a long only, equally-distributed, unleveraged high yield bond strategy, aiming at maximize the realized total return to maturity through high yield securities selection, via its default avoidance-focused research approach
FEE STRUCTURE
The Fund adopts a Fee Structure composed by Management Fee + Performance Fee with High Watermark:
- 0.5% Management Fee
- 15% Performance Fee
PORTFOLIO CONSTRUCTION
- 80-100 bond securities
- 2-5 years maturity horizon
- No leverage
TARGET CLIENTS
The Fund is designed for private or professional investors looking to allocate part of their portfolio to a reputable High Yield manager and are:
- Looking for a public managed vehicle or
- Unable to meet the minimum size requirements for a Managed Account
LIQUIDITY
Quarterly Liquidity
BENCHMARK
Bloomberg-Barclays Global High Yield Total Return Index Unhedged
Our History
Wide diversification is only required when investors do not understand what they are doing
Wide diversification is only required when investors do not understand what they are doing
Wide diversification is only required when investors do not understand what they are doing
Wide diversification is only required when investors do not understand what they are doing
Wide diversification is only required when investors do not understand what they are doing
Wide diversification is only required when investors do not understand what they are doing
The way information is publicized and constructed may affect investors’ perception of the risk implications and trigger corresponding investment/divestment decisions.
Our experience is that investors often overreact to such external inputs due to lack of understanding, creating investment / divestment opportunities.
Maintaining a non-biased approach is critical to exploiting these asymmetries while applying a methodical research and monitoring process.
How it Works
The service is delivered through three product lines:
1. Advisory Services
2. Separate Managed Accounts
3. AIF Luxembourg-Based Investment Fund(s)
Our Credit High Yield
Investment Proposition
What We Do
-
- HYDE Credit is a Credit Investment Firm focusing on High Yield Securities and Special Situations.
- We provide our clients with a fully integrated service starting from single issuer credit analysis to securities selection, portfolio construction and buy/sell execution strategies, portfolio management, reception and transmission of orders, post-acquisition credit monitoring.
- The service is delivered in the form of 24/7 proactive coverage
- Our investment service has been specifically designed to support investors who aim to maximize their annual cash flows but need to prioritize long term capital protection.
- Our business model allows for a results-based performance fees in order to achieve full alignment of interests with the Client.
Our Research Methodology
-
- HYDE Credit focuses on deep qualitative and quantitative credit analysis aimed at preventing default and fraud risk while selecting securities with the highest expected total return to maturity.
- To achieve this goal, we follow an unconventional research methodology based on a multi-disciplinary approach aimed at building a true-to-reality risk profile of our target issuers by assessing their ability and willingness to repay debt.
- We add the Human Factor (qualitative) Analysis while determining issuers’ willingness to repay their debt.
- Our multi-disciplinary approach involves, amongst others, forensic accounting, stakeholders’ profiling and behavioral patterns analysis, corporate culture profiling, our red flags detection model to avoid fraudulent behaviors. The aim is to identify significant reasons NOT TO INVEST, as opposed to justifications to invest.
- To enhance capital protection, we adopt a buy-and-hold investment period and focus on bond maturities consistent with our assessment of financial and stakeholders forecasted behavioral patterns.
- We focus on industrial, niche issuers and aim to avoid overcrowded and overly publicized sectors.
- Contrary to most industry practices, we use our research to avoid investment traps as opposed to trading them actively.
- Over time this value approach allows for more consistent and predictable investment returns compared to high-frequency directional trading strategies.
- Price action is irrelevant after an investment has been made, unless we detect changes in the original default risk analysis.
Our Team
Marco is CEO and CIO of HYDE Credit. He has 31 years of experience in the fixed income realm having played senior roles at Goldman Sachs, Merrill Lynch and Credit Suisse in London and Zurich.
He combines an extensive hands-on experience in the fixed income and credit markets with portfolio management skills acquired over the years working with both institutional and UHNW clients. Marco graduated with a degree in Economics from Bocconi University.
Over 20 years experience in Investment Banking across Corporate Finance, Structured Products and Family Office coverage. Miguel did investment banking coverage of Family Offices in EMEA for ICBC Standard and BTG Pactual (including Asset Management), Structured Products sales in Latin America for ABN AMRO and Corporate Finance at UBS.
Miguel graduated in Economics from Universidade Nova de Lisboa.
Jacopo graduated from Bocconi University (Milan) with MsC in International Management, specializing in credit analysis, profiling and forensic analysis for financial fraud detection. He joined HYDE Credit in 2018 as credit research analyst.
He is now Head of research on Fixed Income High-Yield portfolios. Jacopo played a key role in the development of a cross-disciplinary qualitative and quantitative research approach, for default risk minimization and fraud risk detection.
Francesco received his Masters in Business Economics from Bocconi University and has since spent 25 years Corporate Finance leading roles for various MNCs and Holding Companies in Europe and Middle East.
He brings his expertise in Compliance and Financial Planning to the team, ensuring smooth and sustainable operations.
His in-depth knowledge of international accounting also has a key role in the implementation of HYDE’s financial red flags spotting model.