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 05/31/2020
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

17.7%

-27.4%

-14.6%

-2.3%

-1.1%

5.9%

11.2%

Net of Fees

17.5%

-27.7%

-15.4%

-3.3%

-2.1%

4.9%

10.1%

ICE BofA Merrill Lynch US High Yield Master II

8.5%

-5.7%

0.3%

2.6%

4.1%

6.5%

10.1%

Allocation Breakdown2

  • Bonds 49.1%
  • Equity 36.4%
  • Real Estate Investment Trusts (REITs) 5.9%
  • Publicly Traded Partnerships (PTPs) 5.5%
  • Preferred 3.1%

Asset Allocation2

  • Common Equity 47.6%
  • Fixed Income 48.9%
  • Preferred Equity 3.0%
  • Cash 0.5%

Top 10 Holdings By Issuer2

  • Apollo Global Management Inc. 8.6%
  • Diebold Nixdorf Inc. 8.6%
  • CenturyLink Inc. 6.9%
  • Bed Bath & Beyond Inc. 5.5%
  • The Chemours Co. 5.3%
  • Cedar Fair LP 4.9%
  • Carlyle Group Inc. 4.6%
  • Curo Group Holdings Corp. 4.6%
  • Endo International PLC 4.2%
  • The GEO Group Inc. 3.9%

Characteristics2

  • Number of Holdings 38
  • Current Yield3 11.0%
  • Annual Turnover 77.9%