The INCORE Short Government strategy seeks to provide a high level of current income, consistent with the preservation of investors’ capital, by investing primarily in securities issued by the U.S. Government and its agencies or instrumentalities. We seek to outperform the Barclays Capital 1 - 5 Year U.S. Government Bond Index over a full market cycle with less risk.
Philosophy & Process
To provide a high level of current income, consistent with the preservation of investors’ capital, we focus on seasoned GNMA mortgage loans backed by the full faith and credit of the U.S. Government. We believe the bond market in general, and this niche segment in particular, is inherently inefficient due to market segmentation, imperfect information, and over-the-counter trading. This inefficiency creates opportunity which we seek to capitalize on in large part by conducting fundamental, bottom up analysis. We purchase securities with above average yield and below average prepayment sensitivity, resulting in holdings that are biased toward stability of cash flows.