Investment Objective
PGIM Fixed Income's Alpha Opportunities Strategy is a market neutral, relative value, long-short strategy investing primarily in fixed income markets and derivatives across corporate, securitized, emerging markets, and government debt. The Strategy seeks to maximize total return on a risk-adjusted basis.1
Investment Philosophy
The Strategy's investment philosophy and approach seeks to capitalize on our relative value expertise and express our "best ideas" in fixed income. The Strategy utilizes its risk management framework to focus risk in areas with the highest potential reward while limiting downside risk.
Investment Process
PGIM Fixed Income's Alpha Opportunities Strategy seeks investment opportunities through five trading sub-strategies that use a mix of fundamental and quantitative analysis. The primary focus of each sub-strategy is relative value within the fixed income markets, and all are managed to be uncorrelated to the market over time. The five sub-strategies are as follows:
- Quantitative Sector Relative Value
- Systematic Strategies
- Global Liquidity Relative Value
- Credit Discretionary
- Volatility Discretionary
Features of the Alpha Opportunities Strategy include:
- Diversified sources of alpha with a focus on sector and security selection
- Implementation of PGIM Fixed Income best ideas in long/short relative value format
- Prudent use of leverage commensurate with strategy objective
Thank you for your interest in PGIM Fixed Income.
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