The investment team is dedicated to deep fundamental credit research which serves as a foundation to the team’s high conviction investment process.
The team seeks to invest in issuers with high-quality business models that have compelling risk-adjusted return characteristics. The team’s research process has four primary pillars:
The team uses a variety of sources to understand an issuer’s business model resiliency. It analyzes the general health of the industry in which an issuer operates, the issuer’s competitive position, the dynamics of industry participants and the decision-making history of the issuer’s management.
Financial Strength and Flexibility
The team believes that analyzing the history and trend of free cash flow generation is critical to understanding an issuer’s financial health. The team’s financial analysis also considers an issuer’s capital structure, refinancing options, financial covenants, amortization schedules and overall financial transparency.
The team believes that credit instruments by their nature have an asymmetric risk profile. The risk of loss is often greater than the potential for gain, particularly when looking at below investment grade issuers. The team seeks to manage this risk with what it believes to be conservative financial projections that account for industry position, competitive dynamics and positioning within the capital structure.
The team uses multiple metrics to determine the value of an investment opportunity. It looks for credit improvement potential, relative value within an issuer’s capital structure, catalysts for business improvement and potential value stemming from market or industry dislocations.
Bryan C. Krug, CFA, is a managing director of Artisan Partners and a portfolio manager on the Credit team. In this role, he is the portfolio manager for the Artisan High Income Strategy, including Artisan High Income Fund.
Prior to joining Artisan Partners in December 2013, Mr. Krug was the portfolio manager of Ivy High Income Fund at Waddell & Reed from February 2006 to November 2013. Mr. Krug joined Waddell & Reed in 2001 as a high yield investment analyst and was later promoted to portfolio manager. Earlier in his career, he was affiliated with Pacholder Associates as the primary analyst for a distressed portfolio. Mr. Krug holds a bachelor’s degree in finance from Miami University, Richard T. Farmer School of Business.
This website is intended for persons in the United States only and should not be considered a solicitation or an offering to investors residing outside the United States. The Artisan Partners Funds are offered by prospectus. Carefully consider the Fund's investment objective, risks and charges and expenses. This and other important information is contained in the Fund's prospectus and summary prospectus, which can be obtained by calling 800 344 1770. Read carefully before investing.
Artisan Partners Funds offered through Artisan Partners Distributors LLC, member FINRA, a wholly owned broker/dealer subsidiary of Artisan Partners Holdings LP. Artisan Partners Limited Partnership, an investment advisory firm and adviser to Artisan Partners Funds, is owned by Artisan Partners Holdings, LP. Artisan Partners Limited Partnership does not provide investment advice directly to shareholders of the Artisan Partners Funds.
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