Investment Process

Sonora Investment Management focuses on investing in U.S.-listed debt and equity of companies that generate cash flow. We favor equity investments in companies with dominant and growing businesses, significant competitive advantages, growing dividends, and sustainable business models. Our primary investment objective for most investors continues to be preservation of principal, a competitive income yield, and the potential for growth.


  • Sonora invests in individual equity and fixed income securities for clients.
  • Customized portfolios are constructed based on suitability for each client.
  • Asset allocation and the appropriate balance of income and growth are determined from clients interaction.
  • We take a bottoms up approach to valuation by assessing each company’s ability to generate free cash flow, balance sheet strength, competitive position and potential for growth.
  • The firm does not invest in unlisted securities, derivative securities, options/futures or insurance products.
  • Sonora Investment Management also has experience investing in convertible corporate bonds.

Convertible Bonds

A convertible bond is a bond issued by a corporation that, unlike a regular bond, gives the bondholder the option to exchange the bond for common equity shares in the company that issued it. This gives the bondholder both a fixed-income investment with coupon payments as well as the potential to benefit from an increase in the company’s share price. A convertible bond issue, like that of other corporate bonds, will state the maturity and the coupon on the bond. A convertible bond also has information about the conversion option, or how many shares will be received for the bond if it is converted. From the investor’s perspective, a convertible bond has a value-added component built into it; it is essentially a bond with a stock option hidden inside. Convertible bonds are attractive because they historically have been able to provide returns that are highly competitive with common stocks in average equity markets, outperform in poor equity markets and participate in strong equity markets. Convertible bonds provide investors with growth opportunities linked to the performance of the company’s stock, with higher yield and stability and downside protection of bonds.