• Home
  • Value for Investors
  • Approach to Managers
  • Investments
    • Greenhaven Road Capital
    • Johkim Capital
    • Monterone Partners
    • Zama Capital
  • News
  • Team
  • Principals & Special Advisors
  • Contact

Johkim Capital Preservation Notice

September 7, 2021
In Johkim Capital’s September letter, portfolio manager Jatin Kakkar informed investors that the firm will be transitioning to its “Preservation-Plus” strategy after moving to “Risk-On” in March 2020. This latest move came from Johkim’s recognition that overall market conditions have shifted to fully or overpriced, noting overall spreads close to historic lows (300 bps), a virtual absence of bankruptcies and a significant number of issuers being upgraded to investment grade. The portfolio transition will allow for earning residual Risk-On returns through current holdings while re-positioning the portfolio to preserve capital and provide liquidity to redeploy capital in a crisis.
Market metrics cited by Mr. Kakkar include historically tight high yield spreads, recovery in Covid impacted sectors of energy, retail, restaurants, and airlines, record high yield issuance in 2020, and 100 new distressed issuers (down from 800+ in March 2020).
© Copyright 2023 Stride Capital Group LP. All rights reserved.
The material included on this website is for informational purposes only and is not an offer to buy or sell, nor a solicitation of an offer to buy or sell, any security or any other investment product. All information on this website, including with respect to investment objectives and themes, is subject to change without notice or notification of such changes made. The material on this website is not investment, legal, tax, or accounting advice. This website includes forward-looking statements and statements of opinion. No representations are made that any of such statements will prove to be accurate, and there is a substantial likelihood that some or all of the forward-looking statements will prove highly inaccurate. No endorsement or recommendation is made as to any other entity or issuer, or any security issued thereby, that is referenced in this website, and any information regarding any such entity, issuer, or security should be obtained from such entity or issuer directly. References on this website to "Stride" or "Stride Capital" are references to Stride Capital Group LP.

We use cookies to enable essential functionality on our website, and analyze website traffic. By clicking Accept you consent to our use of cookies. Read about how we use cookies.

Your Cookie Settings

We use cookies to enable essential functionality on our website, and analyze website traffic. Read about how we use cookies.

Cookie Categories
Essential

These cookies are strictly necessary to provide you with services available through our websites. You cannot refuse these cookies without impacting how our websites function. You can block or delete them by changing your browser settings, as described under the heading "Managing cookies" in the Privacy and Cookies Policy.

Analytics

These cookies collect information that is used in aggregate form to help us understand how our websites are being used or how effective our marketing campaigns are.