Richard L. Argyle

Caywood-Scholl Capital Management (CSCM) specializes in the management of high yield bonds. The firm's investment approach is based on the belief that superior risk-adjusted performance in the high yield market is best achieved by protecting against the downside. Portfolios are weighted with upper-tier high yield securities to control default risk and ensure that the premium yields available in the high yield market accrue to their clients benefit. Holdings of high-quality high yield issues are selectively augmented with more volatile credits that the firm believes are significantly mispriced. CSCM's investment research process begins with a macroeconomic analysis to identify favorable industries. The firm ten performs detailed credit research on individual issues within those industries to identify companies that offer the most compelling risk/return tradeoff. CSCM's proprietary Credit Scoring Model is used to identify relative value opportunities within industries and across rating categories. Credits held in clients' portfolios are continuously monitored to ensure that the rationale for owning them is still valid. CSCM will sell a security is (1) an industry's outlook deteriorates (2) a company's results underperform the firm's projections (3) there is an unexplained or fundamental reason for an extreme drop in the company's stock and/or (4) price appreciation occurs and the funds are redeployed elsewhere.