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 08/31/2021
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

0.3%

29.6%

54.0%

9.7%

12.6%

10.8%

15.0%

Net of Fees

0.1%

28.8%

52.5%

8.7%

11.5%

9.7%

13.9%

ICE BofA Merrill Lynch US High Yield Master II

0.9%

4.6%

10.3%

6.8%

6.5%

6.9%

10.4%

Allocation Breakdown2

  • Bonds 44.1%
  • Equity 45.2%
  • Real Estate Investment Trusts (REITs) 9.3%
  • Private 1.4%

Asset Allocation2

  • Common Equity 54.3%
  • Fixed Income 44.0%
  • Preferred Equity 0.0%
  • Cash 1.4%

Top 10 Holdings By Issuer2

  • Pitney Bowes Inc. 6.7%
  • GEO Group Inc. 6.0%
  • Bed Bath & Beyond Inc. 5.2%
  • Alliance Resource Operating Partners LP 4.7%
  • Chimera Investment Corp. 4.1%
  • H&R Block Inc. 4.1%
  • Viatris Inc. 4.0%
  • Endo International PLC 4.0%
  • The Chemours Co. 4.0%
  • Lumen Technologies Inc. 3.9%

Characteristics2

  • Number of Holdings 42
  • Current Yield3 5.3%
  • Annual Turnover 66.8%