Client Login Romark FIRM TEAM STRATEGIES RESPONSIBLE INVESTING KNOWLEDGE CENTER CONTACT US OUR FIRM OVERVIEW PHILOSOPHY PROCESS HISTORY FOUNDER'S LETTER GENERATING INCOME CAREFULLY ® FIRM OVERVIEW Founded in 1985, SHENKMAN CAPITAL is a true pioneer in the high yield market and remains an industry leader today, known globally for the depth of our experience and knowledge. We stand out in our singular focus on below-investment grade assets. We are an SEC-registered investment advisor, headquartered in New York City, with offices in Stamford, Connecticut, and London, U.K. We are independently owned by team members and directors. Being a boutique investment manager allows our firm to be more agile than the industry's financial supermarkets. We consider ourselves portfolio builders, who know the difference between an investment and a trade, and have the judicious mindset of prudent bankers. OUR CULTURE S H E N K M A N PHILOSOPHY SHENKMAN CAPITAL'S philosophy for achieving high risk-adjusted returns is to preserve capital under all market conditions and to maximize compound interest income through a disciplined and rigorous process predicated on comprehensive, fundamental analysis. Our motto is: Discipline Drives Performance® RESEARCH PROCESS High yield has historically improved efficiency and reduced risk for traditional portfolios of stocks and bonds. However, highly leveraged companies are not without risk. SHENKMAN CAPITAL approaches the market defensively, offering investment opportunities across the entire debt capital structure. To capture the attractive coupon–and to allow income to compound over time–we navigate the leveraged finance asset classes with prudence and discipline. Our primary focus is always on downside protection. We adhere to a rigorous research process, focused on credit fundamentals, which enables us to construct portfolios that comprise high quality issues. We implement our research process the same way, every day, regardless of deal flow or market conditions. PERFORMANCE DRIVEN BY CREDIT RESEARCH® I Rigorous, in-depth credit analysis II Direct communication with management teams III Proprietary data analytics IV Comprehensive financial analysis V Trading analytics At SHENKMAN CAPITAL, we allocate significant attention and resources to the intricacies of each credit. Our analysts spend an enormous amount of time constructing financial models, meeting and talking with senior company managements, calculating a proprietary C.Scope® credit score, and preparing a detailed credit report for presentation to the Credit Committee for debate and a vote. Our process is never compromised by time! Like creating a high-quality timepiece, no step in the process can be eliminated or expedited. Our highly-skilled analysts are dedicated to their craft and take great pride in their credit recommendations. CREDIT CLOCK P E A K XII C O N T R A C T I O N III T R O U G H VI E X P A N S I O N IX THE SHENKMAN DIFFERENCE Structure and process of a major financial institution with a family culture that ensures personalized and discreet client service. Time-tested credit analysis predicated on our proprietary analytical tools. Mitigating risk is more critical to long-term success than maximizing short-term profits. Clients' interests always come first. The best team includes individuals who are both smart and nice. HISTORY 1985 July SHENKMAN CAPITAL founded 1985 December Proprietary C. Scope scoring system launched 1986 June First International Mandate 1996 June Bank Loan Strategy Launched 1997 FOUNDER'S LETTER TO ALL INVESTORS: Leveraged finance investments can provide a vital solution in asset allocation strategy. Besides the obvious goal of a higher current income stream, an appropriate allocation to the high yield market can offer both diversification and lower volatility than equities. There is a common misconception that all fixed income sectors are directly correlated to the U.S. Treasury market. While high yield bonds have similar characteristics to other fixed income instruments, such as a coupon and maturity, high yield companies issue "story bonds" where the financial condition of the issuer ultimately drives the valuation. Although interest rates may play a role in the daily price discovery, the probability of default or restructuring eventually drives the valuation. Bank loans offer opportunities to gain floating-rate exposure to these companies, typically with greater security than with a high yield bond. Convertibles, CLO liabilities, and global securities offer additional ways for us to tailor portfolios to the needs of our clients, utilizing the same time-tested discipline we've used since the inception of our firm. At SHENKMAN CAPITAL, we believe the best way to avoid defaults and credit mistakes is to undertake independent research. We constantly analyze and evaluate the fundamental financial condition of each company before any investment is made. The greatest value-add that SHENKMAN CAPITAL provides its clients is our in-depth credit analysis, utilizing our proprietary credit methodology to identify mis-rated companies. Many portfolio managers rely on published ratings as their primary source of creditworthiness. At SHENKMAN CAPITAL, we pride ourselves on comprehensive research and a structured process to minimize credit problems in our portfolios. Credit research is the heart and soul of our investment philosophy. For more than 30 years, our investment philosophy, of preservation of capital and pursuit of attractive risk-adjusted returns, has remained constant. When clients select SHENKMAN CAPITAL for their leveraged finance mandates, they know our differentiated investment style will be maintained under all market conditions. SHENKMAN CAPITAL has been built on a solid foundation of time-tested investment principles, where our ultimate goal is to serve the best interests of our clients each and every day. Respectfully yours, Mark R. Shenkman — Founder and President FIRM OVERVIEW PHILOSOPHY PROCESS HISTORY FOUNDER'S LETTER TEAM EXTRAORDINARY PEOPLE LEADERSHIP STRATEGIES PRODUCT OFFERINGS MUTUAL FUNDS UCITS FUNDS RESPONSIBLE INVESTING OVERVIEW PRI ASSESSMENT ESG NEWSLETTER ESG POLICY KNOWLEDGE CENTER MARKET PERSPECTIVE UNDER THE SCOPE WHITE PAPERS PUBLICATIONS NEWS CONTACT US LOCATIONS EMAIL FORM © 2021 SHENKMAN CAPITAL MANAGEMENT, INC. ALL RIGHTS RESERVED. 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