Management & Investment Process


The investment team leverages high degrees of experience and knowledge within a disciplined investment process. Learn more about the Team.
  • Bryan C. Krug, CFA
  • Portfolio Manager
  • 22Years Investment
  • Seth B. Yeager, CFA
  • Portfolio Manager
  • 20Years Investment

Investment Process

The investment team will employ a fundamental investment process to construct a high-conviction portfolio comprised primarily of floating rate debt instruments that are attractively valued, including, without limitation, floating rate leveraged loans, which could include, among other types of loans, senior secured loans, unsecured loans, second lien loans, bridge loans and junior loans. The team’s aim is to invest across the credit quality spectrum in various industries and issuance sizes to construct a portfolio that can generate appealing risk-adjusted returns.

Business Quality

  • Qualitative industry analysis
  • Consider ESG-related risk factors
  • Examine management decision-making history

Financial Strength & Flexibility

  • Free cash flow analysis
  • Corporate structure review
  • Capital structure review

Downside Analysis

  • Conservative financial projections
  • Competitive dynamics
  • Capital structure position
  • Enterprise value support

Value Identification

  • Credit improvement opportunities
  • Relative value within the capital structure
  • Credit cycle awareness
  • Catalysts with optionality
  • Dislocation exploitation

In-depth Investment Process



Other Strategies Managed

Investment Results (% USD)

As of 30 April 2023 QTD YTD 1 Yr 3 Yr 5 Yr 10 Yr Inception
Composite — Gross 1.38 4.97 4.42 3.09
Composite — Net 1.32 4.74 3.71 2.39
Credit Suisse Leveraged Loan Index 0.95 4.09 2.91 2.24
As of 31 March 2023 QTD YTD 1 Yr 3 Yr 5 Yr 10 Yr Inception
Composite — Gross 3.55 3.55 3.20 2.17
Composite — Net 3.37 3.37 2.51 1.48
Credit Suisse Leveraged Loan Index 3.11 3.11 2.12 1.62

Annual Returns (% USD)

12 Months Ended 31 March 2019 2020 2021 2022 2023
Composite — Gross 3.20
Composite — Net 2.51

Calendar Year Returns (% USD)

2018 2019 2020 2021 2022
Composite — Gross -0.80
Composite — Net -1.48
Credit Suisse Leveraged Loan Index -1.06
Returns for periods less than one year are not annualized. 

Past performance does not guarantee and is not a reliable indicator of future results. Current performance may be lower or higher than the performance shown. Composite performance has been presented in both gross and net of investment management fees. 

Investment Risk: Investments will rise and fall with market fluctuations and investor capital is at risk. Investors investing in investment vehicles denominated in non-local currency should be aware of the risk of currency exchange fluctuations that may cause a loss of principal. These risks, among others, are further described in the Important Disclosures section which should be read in conjunction with this material. 
Top 10 Holdings
(% of total portfolio as of 30 April 2023)
KUEHG Corp 5.2
Ultimate Software Group Inc 5.2
Gridiron Fiber Corp 4.5
Nexus Buyer LLC 4.4
Renaissance Learning Inc 3.9
Medline Industries Inc 3.8
STS Operating Inc 3.3
Amynta Agency Borrower Inc 3.2
Employbridge LLC 2.7 Operations Inc 2.7
Total 38.9%
Portfolio Statistics
(as of 30 April 2023)
Number of Holdings 65
Number of Issuers 52
Portfolio Composition
(% of total portfolio as of 30 April 2023)
Portfolio Composition chart
Floating Rate Loans 89.4
Fixed Rate Bonds 6.5
Other Floating Rate Securities 1.2
Fixed Rate Loans 0.2
Cash and Cash Equivalents 2.7
Total 100.0%
Ratings Distribution
(% as of 30 April 2023)
BBB 3.8
BB 6.5
B 79.6
CCC 9.8
Unrated 0.3
Total 100.0%
Sector Diversification
(% of portfolio securities as of 30 April 2023)
Automotive 0.5
Basic Industry 0.8
Capital Goods 10.8
Consumer Goods 6.1
Financial Services 11.1
Health Care 5.3
Insurance 11.5
Leisure 3.8
Media 3.9
Real Estate
Retail 0.3
Services 16.0
Technology & Electronics 24.8
Telecommunications 5.0
Total 100.0%
  • Investing Across the Credit Spectrum Podcast feat. Bryan Krug
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  • Artisan Partners Credit Team First Quarter 2023 Update
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  • Artisan Partners Credit Team Fourth Quarter 2022 Update
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  • Artisan Partners Credit Team Third Quarter 2022 Update
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  • Artisan Credit Team Investor Update—19 May 2022
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Current and future portfolio holdings are subject to risk. Fixed income securities carry interest rate risk and credit risk for both the issuer and counterparty and investors may lose principal value. In general, when interest rates rise, fixed income values fall. High income securities (junk bonds) are speculative, experience greater price volatility and have a higher degree of credit and liquidity risk than bonds with a higher credit rating. The portfolio typically invests a significant portion of its assets in lower-rated high income securities (e.g., CCC). Loans carry risks including insolvency of the borrower, lending bank or other intermediary. Loans may be secured, unsecured, or not fully collateralized, trade infrequently, experience delayed settlement, and be subject to resale restrictions. Private placement and restricted securities may not be easily sold due to resale restrictions and are more difficult to value. Use of derivatives may create investment leverage and increase the likelihood of volatility and risk of loss in excess of the amount invested. International investments involve special risks, including currency fluctuation, lower liquidity, different accounting methods and economic and political systems, and higher transaction costs. These risks typically are greater in emerging and less developed markets, including frontier markets. The costs associated with an investment will impact your return over time. These risks, among others, are further described in Artisan Partners Form ADV, which is available upon request. 

Unless otherwise indicated, strategy characteristics relate to that of a representative account managed within the investment composite. It is intended to provide a general illustration of the investment strategy and considerations used by Artisan Partners in managing that strategy. Individual accounts managed to the strategy may differ, at times significantly, from the reference data shown due to varying account restrictions, fees and expenses, and longevity periods, among others. Where applicable, this information is supplemental to, and not to be construed with, a current or prospective client's investment account information.

Performance Source: Artisan Partners/Credit Suisse. Net-of-fees composite returns were calculated using the highest model investment advisory fees applicable to portfolios within the composite. Fees may be higher for certain pooled vehicles and the composite may include accounts with performance-based fees. All performance results are net of commissions and transaction costs, and have been presented gross and net of investment advisory fees. Dividend income is recorded net of foreign withholding taxes on ex-dividend date or as soon after the ex-dividend date as the information becomes available to Artisan Partners. Interest income is recorded on the accrual basis. Performance results for the Index include reinvested dividends and are presented net of foreign withholding taxes but, unlike the portfolio's returns, do not reflect the payment of sales commissions or other expenses incurred in the purchase or sale of the securities included in the indices. 

Data & Statistics Sources: Artisan Partners/S&P/Moody’s/Bloomberg. Unless otherwise indicated, percentages shown are of total fixed income securities in the portfolio. Portfolio statistics are intended to provide a general view of the entire portfolio, or Index, at a certain point in time and are calculated using information obtained from various data sources. Portfolio statistics include accrued interest unless otherwise stated. Artisan Partners may exclude outlier data and certain securities which lack applicable attributes, such as private securities when calculating portfolio statistics. If information is unavailable for a particular security Artisan may use data from a related security to calculate portfolio statistics. Unless otherwise noted, portfolio statistics represent the weighted average of the portfolio’s fixed-income securities and exclude cash and cash equivalents. Securities of the same issuer are aggregated to determine a holding’s weight in the portfolio. Totals may not sum due to rounding. 

Credit Quality ratings are from S&P and/or Moody's. Ratings typically range from AAA (highest) to D (lowest) and are subject to change. The ratings apply to underlying holdings of the Portfolio and not the Portfolio itself. If securities are rated by both agencies, the higher rating was used. Securities not rated by S&P or Moody's are categorized as Unrated/Not Rated. Free Cash Flow is a measure of financial performance calculated as operating cash flow minus capital expenditures. Treasury futures represented net notional exposure of -0.00% of net assets. 

Credit Suisse (CS) Leveraged Loan Index is an unmanaged market value-weighted index designed to mirror the investable universe of the US dollar-denominated leveraged loan market. New issues are added to the index on their effective date if they qualify according to the following criteria: loan facilities must be rated “BB” or lower; only fully funded term loan facilities are included; and issuers must be domiciled in developed countries. The index(es) are unmanaged; include net reinvested dividends; do not reflect fees or expenses; and are not available for direct investment.