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.

3Q 2019 Portfolio Snapshot

All data as of 07/31/2019
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

2.5%

14.5%

-7.7%

9.4%

3.9%

11.6%

14.6%

Net of Fees

2.4%

13.9%

-8.6%

8.4%

2.9%

10.5%

13.4%

ICE BofA Merrill Lynch US High Yield Master II

0.5%

10.7%

6.9%

6.8%

5.0%

8.6%

11.1%

Allocation Breakdown2

  • Equity 46.4%
  • Bonds 27.9%
  • Publicly Traded Partnerships (PTPs) 20.4%
  • Real Estate Investment Trusts (REITs) 4.5%
  • Business Development Companies (BDCs) 0.0%
  • Cash 0.7%
  • Preferred Equity 0.0%

Asset Allocation2

  • Common Equity 71.3%
  • Fixed Income 27.9%
  • Preferred Equity 0.0%
  • Cash 0.7%

Top 10 Holdings By Issuer2

  • Diebold Nixdorf Inc. 6.3%
  • Carlyle Group LP 6.3%
  • Apollo Global Management LLC. 5.8%
  • CenturyLink Inc. 5.6%
  • Macquarie Infrastructure Corp. 5.3%
  • National CineMedia Inc. 3.8%
  • Sberbank of Russia 3.7%
  • NGL Energy Partners LP 3.6%
  • Quad/Graphics Inc. 3.4%
  • The Blackstone Group LP 3.1%

Characteristics2

  • Number of Holdings 38
  • Current Yield3 8.3%
  • Annual Turnover 53.7%