A Unique Approach

Ardea IM’s highly differentiated pure relative value (RV) investing approach offers a compelling alternative to conventional fixed income investments because it is independent of the prevailing interest rate environment and broader bond market performance.

By accessing a large and persistent fixed income opportunity set beyond the conventional, our pure RV investing approach targets consistent volatility-controlled returns, irrespective of the level of bond yields or the direction of interest rates.

This approach is not driven by the typical macroeconomic factors that dominate the performance of most investments, making it a genuinely uncorrelated alpha source. Our pure RV portfolios can therefore deliver risk and return profiles that are independent of bond and equity market fluctuations. The pure RV opportunity has proven to be a reliable source of alpha because it is driven by structural market inefficiencies that persistently create new relative value mispricing opportunities to profit from.

Ardea IM has specialised in building a repeatable and highly scalable investment process to capture this large and constantly evolving opportunity set. Through disciplined application of our investment process to the largest and most liquid segments of global fixed income markets we have consistently delivered to our clients’ expectations throughout varying economic cycles and financial market environments, including periods of severe market stress.

While many focus on chasing higher returns, we focus on delivering consistent volatility-controlled returns to strictly limit performance volatility and prioritise capital preservation, irrespective of the market environment.

Our RV alpha can be packaged into absolute return, index linked, liability driven or custom portfolios to suit varying client requirements. The pure RV opportunity set is explained in more detail here.