Why Channel and Why Now?
Channel Investment Partners (CIP) is the result of years of experience and conversations about the direction of the asset management industry, primarily related to expenses, incentives, corporate structures, professional experience, executive leadership, and fiduciary responsibilities. We believe the future of the asset management business is not to reinvent the industry but rather return to basics: put the client first and help them reach their objectives. Create a channel, if you will, from goals to action to achievements.
We have observed and experienced inefficient corporate structures for years that have impeded the ability to deliver greater results for clients. The push to specialize has resulted in reduced relative value analysis and misallocations of capital. Time spent managing people and processes through preset, philosophical meetings rather than proactive meetings with tangible outcomes result in missed opportunities. Non-revenue producing managers tend to over manage and create disincentives for valuable revenue generating talented employees to take even well calculated risks. A firm’s asset gathering goals are not necessarily aligned with client performance goals. The optimal corporate structure continues to be flatter with technology utilized to remain efficient. Larger firms are often not able to restructure properly due to legacy contracts and processes nor are their professionals typically equipped with diverse skillsets. The bigger the firm, usually the more specialized skillsets of their employees. In cases of business disruption, large firms become dislocated with decision making and investment abilities even more inefficient and less informed than usual.
While CIP is a boutique fixed income investment firm, we are a partnership of diverse skillsets. We all are “Generalists” that prioritize our strengths. Portfolio Managers are expected to have a strong trading background and work with Credit Research Analysts, both internal and external, to assess relative value. Client Relationship Managers need to function as liaisons between clients and the investment team to offer solutions, not just push a product. We are a flexible and adaptable firm focused on clients. This is best achieved with a properly sized expense structure, aligned incentives, flat corporate structure, experienced professionals, strong leadership, and never forgetting who we work for, the client.
Speed of Execution
Matthew Duch | Managing Partner and CIO
Mr. Duch formed Channel Investment Partners in 2019 and registered it with the SEC in April 2020 with a bigger business vision built around the launch of the Channel Short Duration Income Fund. From 2016 to present, Matt has managed private investments through Duch Capital Management LLC. From 2006 to 2016, Matt was a Vice President, Senior Portfolio Manager for Bethesda, MD based Calvert Investment Management. In his role as a Lead and Co-Portfolio Manager, he was responsible for portfolio construction, credit analysis and trading delivering top decile and quartile performance, winning Lipper Fund Awards in 2008 and 2013. Assets under management nearly doubled from approximately $5bn in 2006 to approximately $9bn in 2009. Since joining the Calvert taxable fixed income team in 2006, he primarily focused on investment grade, high yield and distressed corporate debt, leveraged loans, taxable municipals and treasuries, both bonds and derivatives. Various investment strategies also differed along the interest rate curve from ultra short to long duration.
From 2002 to 2005, Matt was a Trader/Sector Manager at Deutsche Asset Management (DeAM) in New York. While at DeAM, he was responsible for trading over $27 billion in investment grade and high yield credit for insurance, mutual fund and separately managed accounts. As a sector manager, he helped manage an approximately $850 million long-only credit, total-return portfolio that routinely outperformed the Lehman U.S. Credit Index (now the Bloomberg Barclays U.S. Credit Index) benchmark.
From 1998 to 2002, Matt worked at Zurich Scudder Investments in Chicago in several positions including Corporate Trader and Assistant Portfolio Manager with a focus on portfolio risk analytics.