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 02/28/2021
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

11.8%

11.8%

19.8%

8.5%

13.6%

8.1%

14.3%

Net of Fees

11.6%

11.6%

18.6%

7.5%

12.4%

7.1%

13.2%

ICE BofA Merrill Lynch US High Yield Master II

0.7%

0.7%

8.6%

6.2%

8.8%

6.3%

10.6%

Allocation Breakdown2

  • Bonds 49.2%
  • Equity 43.5%
  • Real Estate Investment Trusts (REITs) 6.1%
  • Preferred 1.0%
  • Private 0.2%

Asset Allocation2

  • Common Equity 49.0%
  • Fixed Income 48.6%
  • Preferred Equity 1.0%
  • Cash 0.2%

Top 10 Holdings By Issuer2

  • Geo Group Inc. 7.7%
  • Alliance Resource Operating Partners LP 5.8%
  • Bed Bath & Beyond Inc. 5.6%
  • Atlas Corp. 5.3%
  • Apollo Global Management Inc. 4.7%
  • Nordstrom Inc. 4.3%
  • Lumen Technologies Inc. 4.1%
  • The Chemours Co. 4.1%
  • Curo Group Holdings Corp. 3.9%
  • Diebold Nixdorf Inc. 3.6%

Characteristics2

  • Number of Holdings 41
  • Current Yield3 4.7%
  • Annual Turnover 78.8%