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.

1Q 2019 Portfolio Snapshot

All data as of 03/31/2019
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

10.8%

10.8%

3.7%

12.3%

4.0%

14.7%

14.7%

Net of Fees

10.5%

10.5%

2.7%

11.2%

3.0%

13.6%

13.6%

ICE BofA Merrill Lynch US High Yield Master II

7.3%

7.3%

5.9%

8.6%

4.6%

11.2%

11.2%

Allocation Breakdown2

  • Equity 40.4%
  • Publicly Traded Partnerships (PTPs) 23.3%
  • Bonds 22.4%
  • Real Estate Investment Trusts (REITs) 13.9%

Asset Allocation2

  • Common Equity 77.0%
  • Fixed Income 23.0%

Top 10 Holdings By Issuer2

  • Macquarie Infrastructure Corp. 5.5%
  • Apollo Global Management, LLC 5.2%
  • Carlyle Group LP 5.0%
  • Avon Products, Inc. 4.9%
  • Just Energy Group Inc. 4.6%
  • Diebold Nixdorf Inc. 3.9%
  • The Blackstone Group LP 3.8%
  • CenturyLink, Inc. 3.6%
  • National Cinemedia, Inc. 3.5%
  • NGL Energy Partners LP 3.4%

Characteristics2

  • Number of Holdings 39
  • Current Yield3 8.4%
  • Annual Turnover 51.0%