Investment Strategy - Tactical Income Strategy
The Hilton Capital Management Tactical Income Strategy is a low risk philosophy that employs a disciplined approach to balancing fixed income investments with historically higher income producing equity based securities with strict attention paid to diversification.
Hilton Capital Management has extensive experience in the evaluation of macroeconomic variables which strongly influence our sector allocations.
- Designed for investors who require greater income than can be achieved in an intermediate fixed income portfolio
- Employs a tactical asset allocation approach seeking to take advantage of market pricing anomalies and/or dynamic market movements.
On average we anticipate approximately 20% turnover in our Tactical Income Mandate.
- Hilton Tactial Income emphasizes the following components:
- Strategy is substantially dependent upon specific security selection
- Ability to grow the dividend or distribution to reduce the impact of rising interest rates and inflation
- Selection of securities is not based upon “pure” yield plays thereby providing capital appreciation opportunities and additional diversification benefits
Security selection is dependent on rigorous fundamental analysis. Our investment management team seeks to identify securities that have the potential to possess these attributes:
We are most influenced toward situations which rely both upon yield and appreciation components for total return.
- Ability to generate current and future cash flows (implied yield valuation process)
- Benefit from our firm’s view on expected future interest rates
- Superior growth potential through incremental revenue generation or margin expansion
- Dominant market position or competitive advantages that create high barriers to entry for new entrants.
- Issues that have historically registered above-market yields or tax-advantaged distributions
- Companies we anticipate will have the potential for upside earnings