An Important Asset Class
Emerging markets sovereign and corporate credit constitutes an important asset class and should be a consideration for every sophisticated institutional investor or high net-worth family/individual.
According to the International Monetary Fund, emerging market and developing sovereign economies include 80% of the world’s countries, house 86% of its population and produce almost 60% of global GDP on a purchasing power parity basis. Additionally, the market for publicly-traded corporate credit from these economies has evolved over the last decade from a syndicated loan market into multi-trillion dollar investable universe.
The behavior and motivations of the market’s many and varied participants – local investors, international traders, retail funds, private banks, sovereign wealth funds and others – along with their sometimes idiosyncratic objectives, distinguish emerging markets credit from other fixed income markets and create unique opportunities for earning investment returns.
Often Emerging | Always Cyclical
Greylock Capital believes that emerging markets – like their developed market counterparts – are ultimately cyclical markets.
Our job is to nurture the long-term development of the countries and businesses we invest in by bridging the gaps between the inevitable boom and bust cycles. Our long-term perspective on these markets allows us to perceive investable opportunities when times are good, and when market conditions turn, Greylock Capital has a well-earned reputation for being a welcome perspective at the table in a complex situation and a desirable counter-party with thoughtful, constructive solutions in restructurings.
Partners with Our Investors
We work on behalf of sophisticated global institutions and families to earn the best returns we can over both boom and bust cycles. Greylock Capital emphasizes two-way communication and transparency with clients. Greylock Capital’s clients have included sovereign wealth funds, public and corporate pension funds, insurance companies, endowments, foundations, healthcare organizations, funds-of-funds, investment advisers and high net-worth individuals and families.
Greylock Capital brings four dimensions to bear on all potential investments
One Strategy | Distinct Solutions
Greylock Capital’s flagship emerging markets credit strategy was launched in 1997. Our investment process has evolved with our markets, and today combines various macro and technical factors underpinned by classic tenets of fundamental investing. The investment strategy is differentiated by Greylock Capital’s deep capital markets and structuring/restructuring experience. What truly sets the investment process apart, however, is Greylock Capital’s keen awareness and understanding of political and geopolitical considerations, as well as behavioral intelligence, a significant worldwide network and the cumulative judgment and experience that comes from decades spent in emerging markets.
Greylock Capital’s investment strategy aims to diversify holdings across three main investment themes, yielding a portfolio of emerging markets sovereign and corporate credit instruments across Distressed, Event-Driven and High-Yield Debt, depending on prevailing market conditions.
Greylock Capital’s investment strategy is premised on the belief that investments in emerging markets credit may provide investors with solid returns coupled with low correlation to other asset classes. Many of these investments remain event-driven and may be independent of external market factors. Our experience in these markets provides a competitive advantage in identifying opportunities in both sovereign and corporate debt, and the two sub-segments complement each other well in terms of portfolio construction.
Greylock Capital’s strategy does not employ leverage and has low historical turnover in portfolio assets. Greylock Capital Management offers its investment strategy in distinct Diversified, Concentrated and Special Situations formats.