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 10/31/2019
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

-1.2%

13.6%

0.9%

8.9%

3.6%

10.0%

14.1%

Net of Fees

-1.3%

12.6%

0.0%

7.9%

2.6%

9.0%

13.0%

ICE BofA Merrill Lynch US High Yield Master II

0.2%

11.7%

8.3%

6.0%

5.1%

7.6%

11.0%

Allocation Breakdown2

  • Equity 48.7%
  • Bonds 32.8%
  • Publicly Traded Partnerships (PTPs) 13.7%
  • Real Estate Investment Trusts (REITs) 4.7%

Asset Allocation2

  • Common Equity 66.8%
  • Fixed Income 32.6%
  • Preferred Equity 0.0%
  • Cash 0.5%

Top 10 Holdings By Issuer2

  • Apollo Global Management Inc. 7.2%
  • Carlyle Group L.P. 7.1%
  • Diebold Nixdorf Inc. 6.8%
  • CenturyLink, Inc. 6.6%
  • The GEO Group, Inc. 4.4%
  • Sberbank of Russia PJSC 3.6%
  • The Chemours Co. 3.5%
  • Abercrombie & Fitch Co. 3.4%
  • Alrosa PJSC 3.2%
  • National CineMedia, Inc. 3.2%

Characteristics2

  • Number of Holdings 41
  • Current Yield3 7.8%
  • Annual Turnover 66.8%