PT Asset Management, LLC

Behind the Ticker

Discover how PT Asset Management revolutionizes the bond market with their pioneering ‘Shape Management’ strategy, a unique approach designed to optimize investment returns beyond conventional fixed-income tactics.

MAY 2024

PT Asset Management presents their distinctive approach to bond investment through their proprietary “Shape Management” strategy, aiming to enhance the way bonds are assessed and incorporated into portfolios. The strategy is based on the belief that traditional fixed income metrics fall short in accurately evaluating the risk-return dynamics of bonds. By adopting a deeper analytical framework, PT Asset Management seeks to optimize value creation within their bond investments. This involves dismissing conventional wisdom that accurate predictions of interest rate movements are possible, challenging the sufficiency of duration as a comprehensive risk measure, and critiquing the reliance on yield as a proxy for total return.

“Shape Management” actively utilizes what is known as the knowability of bonds—predictable cash flows and maturity—to assess and project potential outcomes across varying interest rate scenarios. This process enables the creation of diversified bond portfolios strategically designed to enhance value over time. PT Asset Management has been implementing this approach successfully for over 15 years across all their investment vehicles, including their latest product, the Short-Term Bond Fund (STBF). Like their other offerings, STBF is driven by this strategic and efficient method, emphasizing their commitment to innovative bond management that transcends traditional investment techniques.

Risks and Other Important Considerations

The views and opinions expressed are for informational and educational purposes only as of the date of writing and may change without notice at any time based on numerous factors, such as market or other conditions, legal and regulatory developments. Past performance does not predict or guarantee future results. Investing involves risk; principal loss is possible.

There is no guarantee that the strategies and services will be successful or outperform other strategies and services. Certain assumptions may have been made in connection with the analysis presented herein, and changes to the assumptions may have a material impact on the analysis or results. The information contained herein has been obtained from sources considered to be reliable, and is subject to change without notice. PT Asset Management, LLC does not guarantee its accuracy, adequacy or completeness and is not responsible for any errors or omissions for the results obtained from the use of such information.

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