The portfolio managers primarily invest in senior loans issued by companies with leading market share, innovative products, valuable assets, and well-regarded management. The team employs a fundamental, bottom-up (security-by-security) investment process to carefully evaluate each potential issuer's ability to service their debt and identify the most attractively valued opportunities in the market, commensurate with their risks.
Our team limits exposure to individual companies, industries and sectors, seeking to limit volatility through company quality and diversification.
We focus on investing in companies with attractive risk-reward profiles to construct portfolios that we believe can deliver long-term alpha while providing some downside protection.
We utilize rigorous fundamental research to identify securities which have the potential to offer asymmetrical risk/return opportunities.
Our team proactively manages risk by constructing diversified portfolios across sectors, industry groups and securities. We manage, monitor and limit sector weights relative to specified benchmarks and security position sizes within each portfolio.
Our team closely monitors position size and sector weights; we have limits on active security weights against the benchmark for each strategy we manage.
Risk is managed at the portfolio, strategy and security levels to identify diversified sources of alpha. We mainly focus on currency, interest rates and credit. Positions are sized and monitored according to established limits.
We focus primarily on senior loans in an effort to maintain product integrity and limit duration risk.
The team manages risk at both a strategy and individual security level to help ensure that, when combined, they act as the ballast in an investor’s overall portfolio.
The team manages risk by administering duration limits, limiting portfolio weighted average maturity and conducting thorough credit analysis on individual securities.
The Rochester team has created diverse portfolios designed to mitigate the types of risks that municipal bond investors may encounter.
The Commodity team monitors and manages risk at the commodity, sector and strategy levels.
The Real Estate team monitors and manages risk at the security, sector and strategy levels.
The Global Multi-Asset Group monitors and manages risk on an ongoing basis, both at the asset class and portfolio levels.
We emphasize capital preservation by avoiding MLPs that may cut distributions. We seek to build diversified portfolios comprised of MLPs with attractive risk-adjusted total return potential.
High Yield Corporate Debt Team Risk Management
Positions are sized and monitored according to predetermined limits while portfolio management decisions are constrained by tracking error and concentration limits versus the benchmark. We seek to maintain a highly diversified portfolio, conduct rigorous credit analysis of holdings and adhere to industry/sector overweight and underweight limits.
Enterprise Risk Management
Risk Management is an independent control function at OppenheimerFunds responsible for multiple areas of risk including investment risk, counterparty risk, enterprise risk and performance attribution. The team is headed by the firm's Chief Risk Officer, who reports directly to the CEO. This structure ensures that the entire Risk Management team is independent from the investment process, allowing us to avoid conflicts of interest and providing a valuable second set of eyes on both investment and enterprise-wide risks.
Core Responsibilities of Risk Management Team
- Performs comprehensive portfolio reviews with all investment teams
- Monitors individual security holdings across the entire firm
- Works with investment teams to set specific maximums for the active weights of securities and sectors, as well as for predicted tracking error and other risk metrics
- Independently monitors specified team risk metrics
The aim of our Risk Management team is to enable the portfolio managers to make informed decisions on the risk/reward tradeoffs at play in their respective portfolios.
We believe that risk management is not only a responsibility of the firm, but a critical component of our success.
Fixed income investing entails credit risks and interest rate risks. When interest rates rise, bond prices generally fall, and a fund's share prices can fall. Below-investment-grade ("high yield" or "junk") bonds are more at risk of default and are subject to liquidity risk. Senior loans are typically lower-rated and may be illiquid investments.