Income Strategy

An Unconventional Approach to Income

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?

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

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.

Mitigate Volatility: Nontraditional 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.

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

Portfolio Snapshot

All data as of 10/31/2021
Investment Minimum: $10 million

Annualized Performance1

  • Gross of Fees
  • Net of Fees
  • ICE BofA Merrill Lynch High Yield Master II

 

QTD

YTD

1-Year

3-Year

5-Year

10-Year

Since Inception (4/3/09)

Gross of Fees

3.5%

30.4%

58.6%

12.5%

12.8%

11.0%

14.9%

Net of Fees

3.4%

29.3%

57.1%

11.4%

11.7%

9.9%

13.7%

ICE BofA Merrill Lynch US High Yield Master II

-0.2%

4.5%

10.7%

7.1%

6.3%

6.7%

10.3%

Allocation Breakdown2

  • Equity 48.1%
  • Bonds 40.0%
  • Real Estate Investment Trusts (REITs) 9.1%
  • Preferred 1.9%
  • Publicly Traded Partnerships (PTPs) 0.9%

Asset Allocation2

  • Common Equity 57.8%
  • Fixed Income 39.8%
  • Preferred Equity 1.9%
  • Cash 0.0%

Top 10 Holdings By Issuer2

  • Pitney Bowes Inc. 6.4%
  • GEO Group Inc. 6.1%
  • Bed Bath & Beyond Inc. 4.7%
  • Endo International PLC 4.6%
  • Chimera Investment Corp 3.9%
  • Lumen Technologies Inc. 3.9%
  • Viatris Inc. 3.8%
  • The Chemours Co 3.6%
  • H&R Block Inc. 3.4%
  • Stronghold Digital Mining Inc. 3.4%

Characteristics2

  • Number of Holdings 43
  • Current Yield3 6.6%
  • Annual Turnover 62.9%