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 — 1Q 2017

All data as of 3/31/2017

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

8.17%

26.17%

2.76%

9.78%

17.08%

Net of Fees

7.91%

24.95%

1.75%

8.70%

15.94%

Merrill Lynch US High Yield Master II

2.71%

16.88%

4.62%

6.85%

12.81%

S&P 500

6.07%

17.17%

10.37%

13.30%

17.01%

Allocation Breakdown2

  • REITs 25.17%
  • Bonds 20.89%
  • Publicly Traded Partnerships (PTP) 18.71%
  • Common Equity 17.03%
  • Business Development Companies (BDC) 9.54%
  • Preferred Equity 7.76%
  • Cash 0.90%

Asset Allocation2

  • Common Equity 70.45%
  • Fixed Income 20.89%
  • Preferred Equity 7.76%
  • Cash 0.90%

Top 10 Holdings By Issuer2

  • The GEO Group, Inc. 6.36%
  • Seaspan Corporation 5.61%
  • Apollo Global Management, LLC 5.26%
  • Chimera Investment Corporation 5.10%
  • Carlyle Group L.P. 4.82%
  • Frontier Communications Corporation 4.43%
  • EIG Investors Corp 4.31%
  • New Residential Investment Corp. 4.30%
  • Valeant Pharmaceuticals International 4.28%
  • Colony NorthStar, Inc. 3.95%

Characteristics2

  • Number of Holdings 41
  • Indicated Yield3 7.87%
  • Annual Turnover 49.59%
The nature of financial markets is such that when the overwhelming consensus is on one side, the investment opportunities usually lie on the other. Bill Miller, CFA December 1992