DDJ Capital Management Blog

DDJ’s president, CIO and portfolio manager David Breazzano was recently featured in a Funds Europe article, discussing the firm’s 25^th anniversary, our differentiated high yield approach (specifically the lower-rated credit tiers) and how we've been able to foster robust relationships with a diverse range of clients. One section of the article focuses on how DDJ’s extensive credit investment capabilities have afforded us the flexibility to satisfy our clients’ objectives through the development of customized portfolios. The following text is an excerpt from the full-length article:

“As one might expect, the appetite for CCC-rated debt is very client specific, as are allowances for investments in bank loans. However, over the years, DDJ has remained flexible when employing its brand of bottom-up fundamental research and portfolio construction to successfully achieve its clients’ long-term investment objectives.

DDJ Celebrates 25 Years!

This March marks a significant milestone for DDJ as the firm celebrates its 25^th anniversary.  In 1996, using the insights that I honed in my previous roles as a portfolio manager at Fidelity Investments and portfolio manager and analyst at T. Rowe Price, I co-founded DDJ.  Since the inception of the firm, DDJ has consistently applied the investment process that we originally developed, which is premised upon fundamental analysis of each investment opportunity with an emphasis on exploiting the inefficiencies within the lower tier of the high yield credit market.

Have you considered steering your capital toward companies that are more in line with your environmental, social and governance values?

During the Opal Group’s recent 2021 Public Funds Summit, DDJ Portfolio Manager and Director of Research Roman Rjanikov held a discussion with Erika Kennedy, Director, Business Development, about ESG and High Yield and how investors can have the best of both worlds.

During the discussion with Ms. Kennedy, Mr. Rjanikov elaborates on:

• The potentially huge impact that investors can make via their capital allocation decisions (e.g., by rewarding specific sectors such as sustainable energy);
• Balancing the possibility of attractive returns with ESG responsibilities and goals; and
• Avoiding pitfalls associated with broad ESG mandates and third-party ESG ratings.