The anatomy of an investment: From research to returns
Evaluating investment prospects for American High-Income Trust® sometimes requires a creative approach. Three of our fund analysts describe how they looked at three different companies, each one requiring a different approach, but that shared some common traits when it came to evaluating their investment prospects.
“Situations present themselves in different ways, but no matter how you approach an investment, you need to have the deep research to be able to do the fundamental business and company analysis.”
In the wide-ranging and dynamic high-yield bond market, there are a variety of ways to find attractive investments. Sometimes opportunities emerge in moments of crisis. Other times they are uncovered by surprising circumstances. Regardless of the situation, however, the importance of having a strong research organization in place to evaluate the investment opportunities cannot be underestimated.
“Using our depth of research is important when making all investment decisions,” says American High-Income Trust President David Barclay, also a portfolio manager for the fund. “There are a number of different ways of finding investment opportunities for the fund in this diverse and changing marketplace, so it is even more important to have that broad and flexible research operation in place.”
In this series, The anatomy of an investment, we explore three cases that highlight the rigorous research and the diverse approaches that our analysts and portfolio managers take when making investing decisions.