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 09/30/2019
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

2.9%

15.0%

-4.5%

8.9%

4.2%

10.2%

14.4%

Net of Fees

2.6%

14.2%

-5.5%

7.9%

3.2%

9.1%

13.2%

ICE BofA Merrill Lynch US High Yield Master II

1.2%

11.5%

6.3%

6.0%

5.3%

7.8%

11.0%

Allocation Breakdown2

  • Equity 51.4%
  • Bonds 29.4%
  • Publicly Traded Partnerships (PTPs) 14.8%
  • Real Estate Investment Trusts (REITs) 4.4%

Asset Allocation2

  • Common Equity 70.6%
  • Fixed Income 29.4%

Top 10 Holdings By Issuer2

  • Carlyle Group LP 6.6%
  • Apollo Global Management Inc. 6.5%
  • CenturyLink, Inc. 6.2%
  • Diebold Nixdorf Inc. 6.0%
  • Macquarie Infrastructure Corp. 4.8%
  • The GEO Group, Inc. 4.4%
  • Sberbank of Russia PJSC 3.4%
  • National CineMedia, Inc. 3.3%
  • Abercrombie & Fitch Co. 3.3%
  • Quad/Graphics, Inc. 3.2%

Characteristics2

  • Number of Holdings 40
  • Current Yield3 7.7%
  • Annual Turnover 60.8%