A new investment management firm is opening in Redondo Beach: Confido Capital led by Brad Boyd.

Boyd, who has nearly 25 years in the industry – most recently serving as a managing director at Oaktree Capital Management –founded Confido to create some middle ground in the investment strategy scene. He aims to fill the gap between indexing and index-like strategies, which are “vanilla,” low reward and replicate the market, and private equity and private credit funds which often come with high fees and illiquid assets, he said.

“You have this massive bifurcation between those extremes,” Boyd said. “What I’m seeing is a lot of white space in between, which is strategies that are higher quality in nature, which produce reasonable levels of return, which don’t just match the market, but are producing some additional return in alpha, but that also offer liquidity,” Boyd said.

Thus, Boyd developed the “amplified income strategy” based on utilizing high income from public market instruments to create “solutions that produce an attractive level of return that also maintain stability and liquidity.”

Boyd finds this strategy to be timely considering a global increase in the older population – as life expectancy is longer – who need income solutions to live off of.

Boyd said the compounding power of income is at the core of Confido’s strategy, with the firm targeting double digit returns.

“We’re using a global purview across sectors – fixed income, equities, options to generate that income – but the source of return is income,” Boyd said.

Another key factor for the firm is risk management. Protecting against downside and mitigating drawdowns from market turbulence is a priority, Boyd said.

While Boyd was unable to disclose details about fundraising, filings from the Securities and Exchange Commission show a fund called “Confido Multi-Asset Premium Fund, LP” was created in June. The filing set the minimum investment to be accepted from an outside investor at $1 million.