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 04/30/2023
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

0.0%

-3.2%

-10.9%

10.7%

1.4%

3.4%

10.8%

Net of Fees

0.0%

-3.5%

-11.8%

9.6%

0.4%

2.9%

9.7%

ICE BofA Merrill Lynch US High Yield Master II

0.9%

4.7%

1.0%

4.9%

3.1%

3.9%

8.6%

Allocation Breakdown2

  • Equity 62.0%
  • Bonds 23.9%
  • Real Estate Investment Trusts (REITs) 10.5%
  • Publicly Traded Partnerships (PTPs) 3.6%

Asset Allocation2

  • Common Equity 76.4%
  • Fixed Income 24.0%

Top 10 Holdings By Issuer2

  • GEO Group Inc. 7.3%
  • OneMain Holdings, Inc. 5.1%
  • Columbia Care Inc. 4.9%
  • CTO Realty Growth, Inc. 4.7%
  • Viatris Inc. 4.7%
  • Public Policy Holding Company Inc 4.6%
  • Buckle Inc./The 4.1%
  • Medical Properties Trust Inc. 4.1%
  • Jackson Financial Inc. 3.9%
  • Organon & Co. 3.9%

Characteristics2

  • Number of Holdings 38
  • Current Yield3 7.81%
  • Annual Turnover 46.6%