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 08/31/2022
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

2.9%

-23.7%

-24.0%

2.9%

3.4%

6.2%

11.5%

Net of Fees

2.7%

-24.2%

-24.8%

1.9%

2.4%

5.2%

10.4%

ICE BofA Merrill Lynch US High Yield Master II

3.5%

-11.0%

-10.4%

0.8%

2.4%

4.4%

8.7%

Allocation Breakdown2

  • Equity 61.2%
  • Bonds 26.3%
  • Real Estate Investment Trusts (REITs) 7.4%
  • Publicly Traded Partnerships (PTPs) 4.1%
  • Preferred 1.1%

Asset Allocation2

  • Common Equity 72.6%
  • Fixed Income 26.3%
  • Preferred Equity 1.1%

Top 10 Holdings By Issuer2

  • GEO Group Inc. 5.8%
  • Columbia Care Inc. 5.6%
  • Pitney Bowes Inc. 5.4%
  • The Chemours Co. 4.8%
  • Viatris Inc. 4.6%
  • CTO Realty Growth, Inc. 4.3%
  • Buckle Inc./The 4.1%
  • Alliance Resource Partners 4.1%
  • Public Policy Holding Company Inc 4.0%
  • HeidelbergCement AG 3.7%

Characteristics2

  • Number of Holdings 39
  • Current Yield3 6.3%
  • Annual Turnover 57.4%