- The high yield market has come a long way since its creation in the early 1970s, evolving from a tactical asset class to a significant component of investors’ asset allocation.
- Dispelling the myths around the asset class is key to understanding the opportunity and value provided by high yield corporate credit.
- Understanding the nuances of the high yield market can provide investors with exposure to the asset class while potentially avoiding some of the pitfalls of benchmark construction and ETFs.
John Loesch, Banking analyst, Co-Director of Research and Portfolio Manager joins us for an in-depth discussion about Bank OZK, a high-quality bank that has demonstrated an unmatched ability to grow intrinsic value at attractive rates and has done so with remarkable consistency. Businesses like Bank OZK don’t come along every day, and John discusses what excites us about these types of investments. Read more about Bank OZK in our August Industry Perspective.
- Antiquated rules and strict limitations result in a benchmark that fails to capture the entire investable universe but provides opportunities for diligent managers.
- Changes in the market since the Financial Crisis have led to a dramatic evolution of the benchmark.
- Focusing upon the best risk/reward opportunities in the market positions Diamond Hill to take advantage of market dislocations driven by benchmark construction.
The guest for this podcast is Aaron Monroe, sector lead for our consumer group, assistant portfolio manager for our small cap strategy and coverage for our gaming, lodging and leisure research. In our discussion today, we’ll talk about Aaron’s career path to Diamond Hill, the importance of the CFA designation in our business, his visits to parking lots and other places, and searching for value as an investor.
Bill Zox and John McClain are co-portfolio managers on our Corporate Credit and High Yield strategies. Bill Zox started his career as a lawyer, graduated from Williams College, received a degree in taxation from the University of Florida, and received his law degree from The Ohio State University. Bill has been an employee since 2001 and is the Chief Investment Officer for Fixed Income. John McClain started in the industry in 2007 focusing on distressed debt and corporate workouts, and has been with Diamond Hill since 2014. He graduated from the University of Kentucky and received his MBA from Carnegie Mellon.