Osterweis Strategic Income Fund
Managed by the boutique investment management firm Osterweis Capital Management, the the Osterweis Strategic Income Fund’s (OSTIX) strategy seeks to provide capital preservation in concert with long-term total return.
The fund typically invests in short-duration high-yield bonds, as well as convertible bonds, to achieve its objectives. However, the strategy carries the flexibility to allocate anywhere in the fixed-income universe. This type of flexibility presents a great value proposition since it isn’t forced to hold longer-duration Treasury and agency MBS holdings that make up the Barclays aggregate bond index.
It is a “risk-aware” strategy, meaning it will adapt to changes in interest rates, or move to cash in an attempt to shield its investors from an unfavorable investment outcome. This is precisely what OSTIX has done for investors in the month following the recent Fed-induced volatility.