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 09/30/2021
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

-2.6%

26.0%

50.5%

8.7%

11.7%

11.3%

14.7%

Net of Fees

-2.8%

25.0%

49.0%

7.6%

10.6%

10.3%

13.5%

ICE BofA Merrill Lynch US High Yield Master II

0.9%

4.7%

11.5%

6.6%

6.4%

7.3%

10.4%

Allocation Breakdown2

  • Bonds 43.9%
  • Equity 45.3%
  • Real Estate Investment Trusts (REITs) 9.1%
  • Private 1.5%
  • Publicly Traded Partnerships (PTPs) 0.3%

Asset Allocation2

  • Common Equity 54.3%
  • Fixed Income 43.6%
  • Preferred Equity 0.0%
  • Cash 1.5%

Top 10 Holdings By Issuer2

  • Pitney Bowes Inc. 6.8%
  • GEO Group Inc. 5.8%
  • Bed Bath & Beyond Inc. 5.0%
  • Endo International PLC 4.9%
  • Lumen Technologies Inc. 4.1%
  • The Chemours Co. 3.9%
  • Viatris Inc. 3.8%
  • H&R Block Inc. 3.8%
  • Chimera Investment Corp. 3.8%
  • Alliance Resource Operating Partners LP 3.6%

Characteristics2

  • Number of Holdings 43
  • Current Yield3 6.8%
  • Annual Turnover 65.0%