The GMO Opportunistic Income Strategy seeks capital appreciation and current income by investing in what we believe are the most attractively priced sectors and securities in the structured finance marketplace. The Structured Products team utilizes both top-down and bottom-up security selection methods to identify what we believe are the best opportunities from a pure risk/return perspective.
The structured finance asset class offers a range of opportunities due to both its inherently fragmented nature and the inefficiencies caused by market segmentation and structural anomalies. We believe that the marketplace’s complexity, periods of challenging past performance, and very high number of discrete investment opportunities create considerable potential for alpha generation, and that our relatively unconstrained approach and attempts to diversify risk are ideal to dive deeply into sub-sectors and individual securities to access this potential.
In our recent webcast, Securitized Credit: An Alpha-Rich Opportunity Set, Joe Auth discussed how investors can take part in this alpha-rich part of the market without taking on as much exposure to traditional sources of fixed income beta.
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