Investment Strategy

IF YOU DO BETTER, WE DO BETTER



A.H. Williams & Co LP is a registered investment advisory firm that specializes in municipal bond portfolio management. Our platform utilizes competitive margin rates and professional trading to amplify client income, capital gains and seeks to produce superior total return for clients. Our focus is to bring institutional bond selection and trading performance to the high net worth client. We utilize proprietary trading strategies similar to what large investment banks use to increase their own per share earnings but do so for the exclusive benefit of our clients. As former traders and portfolio managers for these large institutions, we can provide a unique opportunity for our clients to participate in trading that generally is not available to individuals. This institutional platform serves as the foundation for individual account proprietary trading opportunities.

With an average of over 25 years of experience managing municpal bond portfolios, the team at A.H. Williams employs a unique and time tested approach designed to provide high net worth investors with:

  • Equity-like returns using fixed income instruments
  • Low correlation to equity markets
  • Tax exempt income
  • Personalized & custom service


We offer a range of programs with different profiles to meet the needs of our clients. Our most aggressive program includes longer maturities, higher frequency trading and a maximum use of leverage. Our less aggressive program seeks to capitalize on the difference between margin costs and investment portfolio yield while maintaining a relatively short maturity duration.

In all our programs, we identify and exploit market inefficiencies to provide our client’s with a superior return at the designated risk level.


Our Difference



Our investment approach is unique and not widely available. We aim to add value for our clients by taking advantage of the many inefficiencies in the municipal bond market. With an average of 30 plus years experience, our team members have lived through the market cycles and can recognize opportunity. This allows us to execute trades effectively, enhance income and capture trading opportunities.


In an over the counter market such as municipal bonds, those that can execute on the many inefficiencies have a distinct advantage.

Our platform and experience permits us to transact with every municipal bond broker dealer in the United States.


Investment Philosophy



By using our proprietary techniques, we can identify securities that exhibit our preferred risk-reward characteristics. We incorporate these securities into our active trading strategies, we are able exploit market inefficiencies .




Unique Trading Strategy



Our active strategy is unique and is unlike most other municipal bond strategies. Our ability to trade is based on our skill and relationships. We believe these skills are rare and we use them to best serve our clients.




Trade Execution



Skillful trade execution is a part of our value add. In 2015 we traded over $400 million of municipal bonds. This volume provides us with coverage from many securities brokers so that we see opportunities to invest not available to many other investors.

Our size also allows us to function as institutional platform that keeps trading costs low. This is a huge benefit to our clients.



Our clients benefit from both the number of deals we see and our ability to keep trading costs low.



Trading Strategy



Relationships

Unlike equities, the municipal bond market is very inefficient. Trading is relationship driven, and strong relationships can gain enhance market access.
A.H. Williams & Co. is a significant participant in the municipal bond market with strong relationships that span over 20 years. This provides coverage from many institutional brokers and provides many “wholesale” purchase opportunities not available to traditional retail or passive municipal bond investors. AHW’s can then create potentially profitable trading opportunities by selling these bonds to retail distributors. This potential source of profit is usually only available to institutional proprietary trading desks.




Portfolio Construction



All securities are purchased to fill one of 3 roles in a portfolio






Investment Strategy



Products and Security Selection

Unlike listed equities municipal bonds have over 50,000 different issuers and 1 million different securities. The ability to acquire the most attractive bonds on a relative value basis drives our returns.

Bonds from each of the US States and territories have unique characteristics that must be understood. We analyze characteristics such as a bond’s credit quality, local tax considerations and supply/demand dynamic to find the bonds that will provide the best aftertax return for our investors.

Being able to understand these characteristics is a specialty. The skills required are significantly different than those needed for other fixed income products. Successful portfolio construction and management requires a specialist that only focuses on the tax free marketplace.




Security Selection







All portfolio holdings are subject to an extensive review process. First, an in depth analysis is performed on the issuer of a security. If the issuer becomes approved, a pricing analysis is done by examining a security’s trade history and consulting pricing services. Finally, a security is analyzed for its relative value versus other similar bonds.


Risk Management




Each strategy is subject to the same risk parameters and daily analysis.



  • Performance results are evaluated for dispersion.
  • Each security is evaluated for downside risk within a 24 hour cycle.
  • Positions viewed as risky are sold