Income Strategy

An Unconventional Approach to Income

Why a Flexible Income Strategy?

Enhance Income: After years of low yields for traditional income investments, many investors are looking to enhance their portfolio with higher yields.

Mitigate Volatility: Non-traditional income sources may offer the opportunity for higher yields and the potential for higher long-term capital appreciation. When actively managed in a single portfolio, alternative income sources’ potential for lower correlations may mitigate excessive volatility.

Why our Income Strategy?

Align Interests: We are the largest individual investors in the strategy, aligning our interests with those of our investors.

Focus on Value: By targeting high-yielding securities at significant discounts to their intrinsic values, we attempt to generate capital appreciation on top of high current income.

Migrate to Opportunity: The Strategy can own almost any type of security across the globe, allowing us to invest tactically in the asset classes we think are likely to generate the best risk-adjusted returns. Income Strategy can own high-yield corporate debt, income-paying common stock, preferred shares, convertible securities, REITs, business development companies, MLPs and more.

Why Now?

Manage Duration: Investors worry about their bond portfolios in a rising-rate environment.  A flexible, actively managed portfolio of income-paying securities may exhibit less duration risk than traditional fixed-income securities.

Stay Active: As an active manager, we have the ability to take advantage of changing market conditions and exercise our patient, long-term approach.

How to Invest

Investment Options: We have options for all types of investors. Have questions? Contact us. We’re happy to help.

Institutional Separate Account – Call us at 410.454.3130 or email us.

Mutual Fund for U.S. Investors

Income Strategy Data — 3Q 2017

All data as of 09/30/2017

Investment Minimum: $50 million

Annualized Performance1

  • Gross of Fees
  • Net of Fees
  • Merrill Lynch US High Yield Master II
  • S&P 500

 

QTD

1-Year

3-Year

5-Year

Since Inception (4/3/09)

Gross of Fees

4.06%

19.78%

4.42%

9.48%

17.03%

Net of Fees

3.80%

18.61%

3.39%

8.40%

15.89%

Merrill Lynch US High Yield Master II

2.02%

9.04%

5.86%

6.39%

12.56%

S&P 500

4.48%

18.61%

10.81%

14.22%

16.88%

Allocation Breakdown2

  • Equity 23.26%
  • Publicly Traded Partnerships (PTPs) 21.18%
  • Bonds 18.57%
  • Real Estate Investment Trusts (REITS) 16.44%
  • Preferred Equity 12.06%
  • Business Development Companies (BDCs) 8.49%
  • Cash 0.60%

Asset Allocation2

  • Common Equity 68.95%
  • Fixed Income 18.54%
  • Preferred Equity 11.91%
  • Cash 0.60%

Top 10 Holdings By Issuer2

  • Carlyle Group LP 6.36%
  • Apollo Global Management, LLC. 5.81%
  • Seaspan Corp. 5.32%
  • Valeant Pharmaceuticals International, Inc. 5.15%
  • New Media Investment Group, Inc. 4.76%
  • Chimera Investment Corp. 4.26%
  • AmTrust Financial Services, Inc. 4.24%
  • New Residential Investment Corp. 4.20%
  • EIG Investors Corp. 4.00%
  • William Lyon Homes 3.41%

Characteristics2

  • Number of Holdings 43
  • Current Yield3 7.94%
  • Annual Turnover 54.90%
Our portfolio doesn't depend on our being right about the twists and turns of the economy.  It depends on our understanding of the prospects for our companies and what is discounted in their share prices. Bill Miller, CFA December 2000