Venk Reddy, CIO of Sustainable Credit, and Marcus Moore, Assistant Portfolio Manager, provided a behind-the-scenes look at how sustainability factors impact creditworthiness and how you, as a fixed income investor, can make a difference with your capital.
Osterweis’ Sustainable Credit Team conducts deep fundamental credit research on corporate debt, including measuring a company along a proprietary Sustainability Spectrum®. The Sustainability Spectrum® shifts the focus beyond traditional environmental, social, and governance (ESG) factors to intentionality, proactivity, and progress.
| Sustainability Spectrum® | Using Capital to Reward Company Progress |
|---|---|
| Awareness | Demonstrate awareness of environmental, social, and governance issues most impactful to the industry or business |
| Strategy | Evidence of a clear strategy to address sustainability issues from a competitive, financial materiality, and an evolutionary perspective |
| Execution | Must show meaningful strides towards improvements in sustainability best practices |
| Measurement | Determine how to measure efforts and define what success means over what time period |
The team uses its proprietary GreenSlate™ software to track companies' progress over time. Key features:
The stages of the Sustainability Spectrum® are: Awareness, Strategy, Execution, and Measurement. Using the Sustainability Spectrum® assists in identifying companies that are leaders in their sectors in key areas of sustainable business practices or who are making or are likely to make visible progress toward appropriate sustainable practices.
Our repeatable approach to credit investing means every holding is proactively selected to meet our fundamental standards, which includes sustainable business practices.
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).
Marcus Moore joined Osterweis Capital Management in 2022 as part of the Zeo Capital Advisors team transition, where he was an Assistant Portfolio Manager focused on credit research, including sustainability analysis. Before joining Zeo in 2019, Mr. Moore worked at Wells Fargo Bank for 14 years as an Analyst within Principal Investing, responsible for the retail, consumer, and gaming sectors across various asset classes including high yield bonds, leveraged loans, and structured products. Prior to working at Wells Fargo, Mr. Moore worked at Edison Mission Energy as an analyst and at Hamilton Resources, Procter & Gamble, and Goldman Sachs.
He is a Portfolio Manager for the sustainable credit strategies.
Mr. Moore graduated from Morgan State University in Baltimore, MD (B.S. in Accounting) and from the University of California, Los Angeles Anderson School with an M.B.A. He also holds the CPA designation.
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