Fixed Income
We believe that identification of the right investment
opportunities requires thorough and rigorous analysis and risk awareness sharpened by long-standing
market experience.

Extensive experience
with a senior team holding
proven track record

Fosun Hive manages fixed income businesses via its experienced team, Fosun Eurasia Capital (FEC), which is an investment advisory boutique focused on Emerging Markets (EM), specifically on EM debt, equities and commercial real estate.

Founded in Moscow in August 2015 by senior professionals in the global investment management industry, FEC focus on asset management in emerging markets and the FI assets we managed are under advisory in two strategies, hard currency high yield emerging markets debt and investment grade emerging markets debt.

The team has extensive experience in fixed income portfolio management and advisory of Emerging Market securities, with a senior team holding proven track record both in current mandates for institutional clients as well as at previous employers such as Deutsche Asset Management, Renaissance AM and Prosperity Capital Management.


Investment Philosophy

Our philosophy is based on the premise that Emerging Markets remain inherently inefficient due to weak institutional design, governance issues and asymmetric information distribution, amplified by sovereign debt accumulation and strong inflows of trend-following funds over the last decades.

To address these risks we exercise disciplined bottom-up selection approach, complementing comprehensive quantitative financial modeling and stress testing by intensive information gathering and qualitative overlay.

Our Uniqueness

Our uniqueness lies in the fact that we are domiciled in a large EM country, and therefore possess in-depth knowledge gained on an incremental basis over years of emerging market country risks, issues, risks and rewards, including potential approaches to fiscal, monetary, political, regulatory and corporate issues.

Additionally, many EM issuers have direct exposure to commodity markets or commodity affected currencies, whereas many of our employees have decades of experience following commodity cycles in EM and covering public companies which are globally important producers.

Our Investment Process

Our investment process is bottom-up, based upon proprietary issuer-specific research. We use overall top-down macro and sectorial views as part of overall portfolio structuring to improve portfolio diversification and optimize risk-adjusted returns. A large universe of EM issuers is continually monitored, with screening for fundamentally strong investment opportunities trading at premium to fair value due to market inefficiencies or dislocations.

Our bottom-up full coverage model in fixed income is research intensive and is more common in the equity world where very deep understanding of companies is required to outperform for an active manager. It allows us to build high conviction active portfolios in fixed income and invest in issuers where there may be no external research available at all apart from company information.

Our Strategy

Our strategy is deep fundamental research and thorough analysis, which in Emerging Markets, especially EM Fixed Income, makes a difference by helping to avoid pitfalls and minimize losses at times of market stress. Rigorous sell discipline and risk management are crucial to avoid temptations of rating arbitrage, especially when certain alarm indicators are flashing red such as inability to explain the balance sheet or business growth, state intervention, corporate governance or management/owner issues.

Being focused on fundamental credit quality assessment and absolute returns, we would not simply emulate the index or invest into distressed securities for speculative reasons; hence in times of broad market rally our performance may at times lag the benchmark comprising such securities (e.g. Venezuela, Lebanon). In our opinion this provides better risk-return profile, lower volatility and higher Sharpe ratio.

Our Focus

Our focus is on outperforming the markets in good part of the cycle, while maintaining these gains and protecting the portfolio pro-actively when credit outlook starts to deteriorate.

In particular, in late part of the cycle investors often abandon individual issuer fundamental research as everything performs mentality gives way to taking on more risk while chasing relative performance.

On the contrary, our particular bottom-up focused investment philosophy and approach is always focused on individual issuer risk and helps to raise caution at early stage when individual issuer idiosyncratic risks already serves as early warning of deteriorating risk reward for the issuer as well as asset class or country broader.