The Radcliffe Short Duration strategy (“SD”) expands on Radcliffe’s long track record with its Ultra Short Duration (“USD”) strategy.
By modestly relaxing the constraints of the USD strategy, the SD strategy seeks higher unlevered returns from a larger investible universe that includes our favorite bonds that don’t quite meet the term or credit criteria of the USD strategy. The SD strategy remains defensive with an average duration of about 2 years and a focus on issuers that we’re confident will have the liquidity to pay off their short duration bonds regardless of market conditions.
In addition to higher average yields, we expect a meaningful enhancement of returns from catalysts and rotation opportunities. The strategy expects to produce higher net returns than comparable short-term bonds with lower volatility of returns and a high Sharpe Ratio.