Orion's Weighing Machine Podcast: Interview with Venk Reddy
Venk Reddy was featured in a recent edition of Orion’s “The Weighing Machine” podcast. During this interesting podcast, Venk discussed what sustainable investing means, how sustainable credit differs from green bonds, and what catalysts could make sustainable investments a hit.
Click on the above image to listen to the podcast, which will open in a new window.
Featuring
Venk Reddy
Chief Investment Officer – Sustainable Credit
Venk Reddy joined Osterweis Capital Management in 2022 as part of the Zeo Capital Advisors team transition. Prior to founding Zeo Capital in 2009, Mr. Reddy was a co-founder of Laurel Ridge Asset Management, a multi-strategy hedge fund, where he managed the credit, distressed, and event-driven portfolios. Previously, he structured derivative products and was head of delta-one trading as a portfolio manager within Bank of America’s Equity Financial Products group (EFP). Mr. Reddy also managed investments in event-driven situations, convertible instruments, and options at Pine River Capital Management and HBK Investments, where he started his career.
Mr. Reddy is a principal of the firm and a Portfolio Manager for the sustainable credit strategies.
He currently serves as a Trustee of Lick-Wilmerding High School in San Francisco. He previously served as a Trustee and officer of the Katherine Delmar Burke School in San Francisco.
Mr. Reddy graduated from Harvard University (B.A. in Computer Science with Honors).
The Osterweis Short Duration Credit Fund’s annualized total returns over the one-year, five-year, and ten-year periods ending March 31, 2023 were -6.75%, 0.64%, and 1.78%, respectively, compared to 1.74%, 2.78%, and 3.26% for the ICE BofA 0-2 Yr Duration BB-B U.S. HY Index and -4.78%, 0.91%, and 1.36% for the Bloomberg U.S. Aggregate Bond Index over the same periods.
The Osterweis Sustainable Credit Fund’s annualized total returns over the one-year and since inception periods ending March 31, 2023 were -6.43% and -0.62%, respectively, compared to -3.86% and 1.90% for the ICE BofA Single-B U.S. HY Index and -4.78% and -0.43% for the Bloomberg U.S. Aggregate Bond Index over the same periods.
Performance data quoted represent past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be higher or lower than the performance quoted. Performance data current to the most recent month end may be obtained by calling (866) 236-0050. An investment should not be made solely on returns. The Osterweis Short Duration Credit Fund’s gross expense ratio was 0.85% as of October 10, 2022. The Osterweis Sustainable Credit Fund’s net/gross expense ratio was 0.99%/2.22% as of October 10, 2022. The Adviser has contractually agreed to waive certain fees through October 10, 2024. The net expense ratio is applicable to investors.
The ICE BofA 0-2 Yr Duration BB-B U.S. High Yield Constrained Index (ICE BofA 0-2 Yr) contains all securities in the ICE BofA U.S. High Yield Index rated BB1 through B3 with a duration-to-worst of less than two years.
The ICE BofA Single-B U.S. High Yield Index is a subset of ICE BofA U.S. High Yield Index including all securities rated B1 through B3.
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Investment grade includes bonds with high and medium credit quality assigned by a rating agency.
Yield is the income return on an investment, such as the interest or dividends received from holding a particular security.
Duration measures the sensitivity of a fixed income security’s price (or the aggregate market value of a portfolio of fixed income securities) to changes in interest rates. Fixed income securities with longer durations generally have more volatile prices than those of comparable quality with shorter durations.
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Investment grade/non-investment grade (high yield) categories and credit ratings breakdowns are based on ratings from Standard and Poor’s, which is a private independent rating service that assigns grades to bonds to represent their credit quality. The issues are evaluated based on such factors as the bond issuer’s financial strength and its ability to pay a bond’s principal and interest in a timely fashion. Standard and Poor’s ratings are expressed as letters ranging from ‘AAA’, which is the highest grade, to ‘D’, which is the lowest grade. A rating of BBB- or higher is considered investment grade and a rating below BBB- is considered non-investment grade.
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