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 12/31/2022
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

12.0%

-22.8%

-22.8%

-1.1%

2.6%

5.8%

11.3%

Net of Fees

11.7%

-23.6%

-23.6%

-2.1%

1.6%

4.7%

10.2%

ICE BofA Merrill Lynch US High Yield Master II

4.0%

-11.2%

-11.2%

-0.2%

2.1%

3.9%

8.5%

Allocation Breakdown2

  • Equity 64.3%
  • Bonds 20.5%
  • Real Estate Investment Trusts (REITs) 11.9%
  • Publicly Traded Partnerships (PTPs) 3.3%

Asset Allocation2

  • Common Equity 79.5%
  • Fixed Income 20.5%

Top 10 Holdings By Issuer2

  • GEO Group Inc. 6.9%
  • Columbia Care Inc. 5.9%
  • Buckle Inc./The 5.7%
  • Viatris Inc. 5.6%
  • Vale S.A. 4.9%
  • HeidelbergCement AG 4.9%
  • Public Policy Holding Company Inc 4.2%
  • CTO Realty Growth, Inc. 4.1%
  • Jackson Financial Inc. 4.1%
  • The Chemours Co. 4.0%

Characteristics2

  • Number of Holdings 38
  • Current Yield3 5.5%
  • Annual Turnover 47.0%