Fixed income investing sounds straightforward. You buy bonds. You collect income. You preserve capital. But in today's interest rate environment, balancing risk and return requires far more precision than most investors realize.
Rising rates, shifting yield curves, and evolving credit conditions create real challenges for bond investors. A portfolio that performed well two years ago may carry risks you did not anticipate. Without a structured approach to managing those risks, you could find yourself exposed to losses that erode both your income and your principal.
One Oak Capital Management, LLC, an SEC-registered investment adviser based in Purchase, New York, has built its entire investment process around this challenge. Founded in 2013, the firm applies institutionally oriented fixed income strategies designed to capture value in the municipal and corporate bond markets while maintaining a disciplined risk management framework.
Here is how the firm defines risk, evaluates it, and builds portfolios designed to protect your capital while generating meaningful yield.
Many investors think of risk as the chance of losing money. That definition is incomplete. For fixed income investors, risk shows up in several distinct forms, and each one can affect your portfolio in different ways.
One Oak Capital Management, LLC identifies six core risk factors that require constant assessment:
Interest rate risk measures how sensitive your bonds are to changes in rates. When rates rise, bond prices fall. The degree of that sensitivity, known as duration, is a key market risk that the firm manages on an ongoing basis.
Credit risk reflects the possibility that a bond issuer may not meet its obligations. One Oak controls this by monitoring the credit rating of the portfolio, specific sectors, and individual securities.
Yield curve risk captures the impact of changes in the slope and shape of the yield curve. A flattening or inverting curve can shift the relative value of bonds across different maturities.
Liquidity risk addresses whether you can sell a bond when you need to. The One Oak team analyzes the marketability of each security in the portfolio for its ability to offer ongoing liquidity.
Sector risk considers how concentration in a particular area can amplify losses. Diversification across sector and issuer is used to reduce this exposure.
Regulatory risk accounts for possible changes in government policy that could affect the securities held in each portfolio.
Each of these risks requires its own set of tools and monitoring processes. Ignoring any one of them can undermine an otherwise solid portfolio.
Understanding risk is one step. Measuring it in real time is another. One Oak Capital Management, LLC uses Bloomberg, Fabkom, and research from multiple sell-side firms to power its risk management process. This data-driven monitoring allows the firm to apply a highly disciplined approach to credit and interest rate risk management.
The firm's investment team brings significant depth to this process. CEO and Chief Investment Officer Stephen DiTursi has 40 years of industry experience and focuses on portfolio risk management, ensuring that investment activities across the firm are structured effectively. Senior Portfolio Manager Neil Crabb, with 34 years of experience, leads the firm's municipal research process and trading systems. Portfolio Manager Keith Cronin, who brings 31 years of experience, oversees corporate bond portfolios, including security selections and hedging characteristics. Joseph Marren, Head of Research with 49 years of industry experience, oversees the firm's research strategy across all sectors and asset classes.
Portfolio Manager Michael DiTursi identifies investment opportunities, analyzes economic indicators, and tracks interest rate trends to inform strategic portfolio decisions. He supervises proprietary trading models and supports hedging strategies to manage risk and strengthen portfolio stability.
This combination of experienced professionals and institutional-grade analytics allows One Oak Capital Management, LLC to evaluate risk and return with a level of precision that is difficult for individual investors to replicate on their own.
Risk management means nothing if the portfolio does not also generate real income for investors. One Oak Capital Management, LLC addresses this through its suite of separately managed account (SMA) strategies, each designed for different risk tolerances and income objectives.
The Enhanced Municipal Portfolio is a laddered, actively managed strategy that focuses on high credit quality bonds in the municipal market. It is designed for investors seeking tax-advantaged income. The strategy has earned a five-star Morningstar Rating and received Zephyr's PSN Top Gun award for achieving a Top 10 return for the three-year ending December 31, 2025, in the PSN Municipal Universe. (Disclaimer: References made to awards/rankings are not an endorsement by any third party to invest with One Oak and are not indicative of future performance. Investors should not rely on awards/rankings for any purpose and should conduct their own review prior to investing. Zephyr/PSN is an asset and wealth management software marketed by Informa (LSE: INF). PSN is a database of Separately Managed Accounts managed by Zephyr. One Oak does not compensate Zephyr for inclusion in the PSN database, nor does it compensate Zephyr for consideration for, or awarding of, the PSN Top Gun designation. The Morningstar Rating for Funds, often called the Star Rating, is a data-driven rating that measures the past performance of a fund in comparison to peers. One Oak has purchased the Morningstar Basics Package, which grants One Oak the permission to feature its Morningstar Rating in marketing materials. This purchase, renewed on an annual basis, has a value of $6,885.06.)
The Enhanced Taxable Municipal Portfolio adds exposure to corporate bonds alongside municipal holdings. It consists of diverse, high credit quality bonds that seek a combination of attractive taxable income and total return. This strategy also received multiple PSN Top Gun awards, including a Top 10 return for the one-year, three-year, and five-year periods in the PSN Municipal and Intermediate Maturity Universes.
(Disclaimer: References made to awards/rankings are not an endorsement by any third party to invest with One Oak and are not indicative of future performance. Investors should not rely on awards/rankings for any purpose and should conduct their own review prior to investing. Zephyr/PSN is an asset and wealth management software marketed by Informa (LSE: INF). PSN is a database of Separately Managed Accounts managed by Zephyr. One Oak does not compensate Zephyr for inclusion in the PSN database, nor does it compensate Zephyr for consideration for, or awarding of, the PSN Top Gun designation.)
For investors who want to limit interest rate exposure, the Enhanced Short-Duration Municipal Portfolio holds short-duration, high credit quality bonds designed for investors seeking total return and tax-advantaged income with lower volatility.
Each strategy uses laddered structures to smooth out fluctuations in interest rates. Portfolios can be tailored to your desired state requirements, duration, management style, and income level. This SMA approach aims to grant transparency, liquidity, and control over your investments.
Volatile markets push investors toward predictable errors. Here are the ones that matter most for fixed income portfolios.
Chasing yield without evaluating credit quality. Higher yields often signal higher risk. When you reach for income without assessing the underlying credit, you expose your portfolio to potential losses that can far exceed the additional income earned.
Ignoring duration. Many investors hold bonds without understanding how sensitive their portfolio is to rate changes. A portfolio with a long average duration can lose significant value if rates rise even modestly.
Concentrating in a single sector. Holding too many bonds from one sector, one state, or one issuer amplifies your exposure to a single negative event. Diversification across sector and issuer is one of the most effective ways to reduce credit risk.
Failing to monitor liquidity. Some bonds look attractive on paper but are difficult to sell without a steep discount. Every security in your portfolio should be evaluated for its ability to offer ongoing liquidity.
Reacting emotionally to headlines. Fixed income markets reward discipline and patience. Investors who sell at the wrong time, or shift strategies based on short-term news, often lock in losses they could have avoided.
One Oak Capital Management, LLC does not treat portfolio management as a set-it-and-forget-it exercise. The firm employs defined trading practices and robust risk controls that allow the team to build and maintain substantial fixed-income portfolios. Steadfast routines are central to portfolio composition decisions.
The firm's investment professionals provide quarterly market commentary combined with insights on portfolio construction, keeping investors informed about the factors driving adjustments. One Oak also reviews your fixed income assets in the context of your overall investment portfolio, factoring in profit and loss opportunities, current relative values, and interest rate risk.
This is an active, ongoing process. One Oak Capital Management, LLC has performed tax-harvesting trades for its Enhanced and Enhanced Taxable Municipal Portfolios, demonstrating the firm's commitment to managing portfolios dynamically as conditions warrant.
(Disclaimer: Any discussion of tax matters contained within this communication is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or applicable state, local, or national tax law provisions; or (ii) promoting, marketing, or recommending to another party any transaction or tax-related matter addressed herein. Tax laws and regulations are complex and subject to change. The impact of a particular tax strategy will vary based on an individual investor's financial situation, investment portfolio, tax bracket, and other factors. Investors must consult with qualified tax professionals regarding their specific circumstances before implementing any tax strategy discussed in these materials.)
If you want to understand how your current fixed income portfolio measures up, One Oak Capital Management, LLC offers a portfolio assessment that evaluates your sensitivity to both interest rate and credit risks. You can request an assessment directly through the firm's website or contact the team at 914-205-5821.
The firm is located at 287 Bowman Avenue, Purchase, NY 10577, and serves individuals, institutions, and registered investment advisers nationwide.
Balancing risk and return in today's market requires the right framework, the right tools, and a team with the experience to execute. One Oak Capital Management, LLC was built to deliver all three.
(Disclaimer: Past performance is not representative of future return performance. Fixed income risks include, but are not limited to, changes in interest rates, liquidity, credit quality, volatility, and duration. To invest with One Oak Capital Management, LLC, you must be a qualified or accredited investor. There can be no assurance that One Oak will implement its investment strategy or that it will lead to investor returns. Actual results may vary materially and adversely. One Oak makes no assertion about any particular comparable firm providing or any employee's previous employment / academic experience guaranteeing any particular knowledge, skill or service level.)
