Tradition. Innovation. Results.

High Quality Tax Exempt Strategy

 

Inception: December 31, 2001

Benchmark: Barclays 5-Year Municipal Bond Index

Who We Are

David M. Underwood Jr.

David M. Underwood, Jr.

President & Chief Compliance Officer

Experience: 24 years

 

Mr. Underwood is analyst and senior portfolio manager for the firm's High Quality Tax-Exempt strategy. Prior to joining Chilton Capital Management in 2003, he served as a financial advisor and fixed-income credit analyst for Legg Mason Wood Walker from 1993 to 2002. Mr. Underwood is also the firm's Chief Financial Officer, Chief Compliance Officer, and Chair of its Management Committee.

 

Mr. Underwood has a BA in Economics from Southern Methodist University and an MA in Math Education from the University of Houston.

 

Mr. Underwood serves on the firm's Investment Policy and Management Committees.

Investment Philosophy

 

Chilton Capital Management seeks to maximize income for our clients while assuming the least amount of risk. The cornerstone of our investment philosophy is quality. We believe that an unbiased investigation of each fixed income security, including an issuer’s rating history and financial information, is essential to creating a risk-averse bond portfolio. We utilize both credit analysis and yield curve placement to determine value.

 

Investment Process

 

The fixed income investment process begins by reviewing the universe of municipal bond issuers in the State of Texas. The type of municipality determines the proprietary credit analysis. A bond issue sold by the State of Texas or by an agency of the State of Texas is analyzed differently than a bond issue sold by a local school district. In both cases, there are unique factors that require specific analysis. The credit rating and financial position of each issue is analyzed as is the general economic condition of the region. Default risk is assessed regardless of whether or not the issuer is insured.

 

Once we have completed our proprietary credit analysis and have decided to purchase an issue, the bond’s yield and price levels are analyzed relative to the market. In some instances we make comparisons to other issues already priced in order to better determine the relative value. Yield curve analysis is also used to determine relative value.

 

The perceived direction of interest rates, both short-term and long-term, affects the process as well. Duration management may be used to lengthen or shorten the maturity of individual portfolios. In addition, premium bonds or discount bonds may be used to add value.

 

Once the analysis is complete and suitable maturities of an issue are identified, bonds are purchased for individual portfolios. Positions are continuously monitored to track the issue’s financial position and any potential rating changes of an individual security and its issuer.

Which strategies or topics interest you?

Choose all that apply.

Submitting Form...

Error...

Form received.