Taxable Investment Company Strategy

Investment approach

This strategy seeks to take advantage of the opportunity for higher yields and discount appreciation in taxable fixed income closed-end funds, while managing risk and controlling execution in a low-volume market.

Key Characteristics

  • 30-40 funds from investable universe
  • Seeks broad diversification with allocations that also account for individual fund liquidity characteristics
  • Active rebalancing aims to take advantage of idiosyncratic trading patterns and capture relative value
  • May utilize an option purchase strategy to potentially reduce interest rate related volatility