What is Advents investment process?
Convertible and High-Yield Securities Universe Screen – Advent uses three quantitative models to identify convertible and high-yield securities with what they believe are attractive risk/reward characteristics. Credit Analysis – The creditworthiness of the security is reviewed, using five years of financial data (interest coverage ratios, debt to capitalization, and cash flows), and the last two years’ quarterly statements. Advent is most interested in companies with stable to improving trends in financial ratios. This step is critical to reducing risk. Advent evaluates credits for all its holdings, while the credit committee evaluates credit on many corporate securities beyond those that just have convertibles outstanding, to give a complete look at an industry’s status and outlook. Fundamental Analysis – Each company is analyzed from a fundamental perspective, using company financial statements, industry data, and meeting with or speaking with management. Underlying equity fundamenta
