Opus Investment Management is a global investment management firm that provides customized investment solutions for institutional and private clients. Founded in 1996 and headquartered in Minneapolis, Minnesota, Opus manages over $9 billion in assets across a range of strategies including fixed income, equity, alternative investments and multi-asset portfolios.
As a boutique investment manager, Opus aims to generate alpha and control downside risk through proprietary research and risk management. It has a history of steady growth and low employee turnover, reflecting its strong culture and investment philosophy. This article takes an in-depth look at Opus Investment Management, including its investment strategies, performance track record, leadership team and future outlook.
Fixed Income Strategies with a Focus on Corporate Credit
Opus’ fixed income strategies comprise nearly 60% of its assets under management. The firm has expertise across the full range of fixed income assets but is best known for its corporate credit strategies. Its flagship Opus Fixed Income Fund aims to maximize total return by investing primarily in investment grade and high yield corporate bonds. The fund has a flexible mandate that allows it to shift allocations across corporate credit ratings based on Opus’ macroeconomic views and bottom-up credit research. This dynamic approach has enabled Opus to outperform core bond indexes over full market cycles. Opus also offers long-short and long-only credit strategies focused on generating alpha. Its fixed income team conducts proprietary research to identify mispriced corporate bonds and exploit inefficiencies in the market.
Disciplined Equity Strategies with Downside Protection
Opus manages over $2 billion in long-only equity and balanced strategies. Its core equity strategy aims to outperform the S&P 500 index with lower volatility over a full market cycle. The strategy balances growth and value stocks based on individual company fundamentals and the prevailing market environment. Opus integrates risk management techniques to protect client portfolios during prolonged equity market drawdowns. Its balanced strategies combine equities with a tactical allocation to fixed income to enhance return potential while moderating risk compared to a pure equity portfolio. Opus also offers dividend equity and small/mid cap strategies tailored to investor preferences.
Alternative Investment and Multi-Asset Solutions
Opus has grown its alternative investment and multi-asset capabilities in recent years, now representing over 15% of its AUM. Its alternative investments platform provides clients with access to private equity, private credit, hedge funds and real assets. Opus combines manager due diligence, portfolio construction, risk monitoring and reporting into a single offering. This provides exposure to less correlated return streams and diversification benefits. On the multi-asset side, Opus builds customized portfolio solutions designed to meet specific client return and risk objectives. Its model portfolios combine equities, fixed income, liquid alternatives and risk overlays within one account.
Strong Long-Term Track Record Across Strategies
Opus has delivered consistent outperformance relative to benchmarks across its major strategies. As of December 2022, its flagship fixed income strategy has outperformed the Bloomberg US Aggregate Bond Index by over 200 basis points annualized since inception in 2010. The Opus core equity strategy has exceeded the S&P 500 by 120 basis points annualized over the past 15 years with lower volatility. The Opus balanced and dividend equity strategies have also outperformed their blended benchmarks. This long-term track record demonstrates Opus’ ability to execute its investment process and add value over multiple market environments.
Experienced Management Team and Deep Research Bench
Opus is led by an experienced, long-tenured management team. CEO Steve Dunn founded the firm in 1996 and continues to be closely involved in the investment process. The broader leadership team averages 15 years at Opus, contributing to stability in the firm’s culture and philosophy. Below the senior level, Opus has built a deep bench of over 20 research analysts and portfolio managers with both buy-side and sell-side experience. This high analyst-to-fund manager ratio allows Opus to conduct exhaustive proprietary research and integrate insights across asset classes.
In summary, Opus Investment Management is a well-established investment firm with a strong long-term track record across equities, fixed income and alternative assets. Its focus on proprietary research, risk management and customized portfolio solutions has enabled Opus to consistently add value for clients. With its seasoned management team and collaborative culture, Opus is well-positioned for continued success in investment management.