Investment Overview

Strategy Description

The Enhanced Income Strategy (EIS) is designed to address today’s low interest rate environment by using modest leverage to enhance Corporate Bond portfolio returns. EIS works well as a stand-alone income product or as a supplement to a diversified portfolio by improving returns with lower volatility than equities. This investment grade strategy is managed opportunistically by buying discounted cash flows and focusing primarily on income generation, with a secondary goal of capital appreciation. Risk is managed by targeting intermediate term bonds which are well diversified in the portfolio by both company and sector.
Investment Highlights

Investment Category

Hedge Fund

Investment Strategy

Investment Grade FI

Investment Structure

Fund, Managed Account

Objective

Our Performance Goal
Hold investment grade fixed income until maturity, Use leverage to borrow short-term and invest in long-term rates

Investment Opportunity

What We Believe
Investors may enhance investment returns by capturing the difference between lower short term and higher long term interest rates

Return Driver - Alpha

Our Edge
Experience, Valuation Expertise
Implementation of Strategy
Tactical Approach

Market Sector Exposure

Fixed Income

Instruments Traded

Fixed Income, Preferred Equity, Mort. Backed Securities

Risk Management

Position Limits, Liquidity Requirements
Investment Structure

Legal Structure

Managed Accounts

Domicile

United States

Fund Minimum Investment

Management Fee (%)

0.75%
Service Providers

Administrator

ACA Compliance Group (ACA)