High Yield Preferred

Our All Cap High Yield Preferred strategy was created in collaboration with one of our advisor partnerships. It was developed in response to client interest in strategies that generate yield in record low interest rate environments without using leverage or being highly correlated to the stock market. See our latest performance fact sheet.

Key Portfolio Tenets

Catalyst-Driven InvestingThe portfolio consists of preferred stocks and baby bonds issued by companies undergoing fundamental changes that are likely to provide stable or improving credit risk and debt metrics. We target assets with yields that are higher than expected given the improving outlook.
Intelligent DiversificationWe balance the benefit of owning multiple positions to reduce company-specific risk while only incorporating our top 30-50 ideas.
AllocationOur holdings are allocated relatively equally among sectors unlike traditional preferred stock funds which are very heavily weighted toward the financial sector.
Position ManagementOur goal is to buy preferred stocks that we can hold for the long term, resulting in relatively low portfolio turnover. 
Risk ManagementBy monitoring the positions in the portfolio, we are continuously evaluating execution toward our investment thesis.