Tactical Income Strategy

Hilton’s core strategy is “Tactical Income,” which employs a balanced approach that looks at the entire capital structure of companies for investment ideas.
What sets Hilton apart from the pack is that we’ve been producing returns for 18 years with our Tactical Income Strategy. Hilton Capital has managed to perform consistently irrespective of market conditions in large part because of one major characteristic: DISCIPLINE.

At a Glance

The Hilton Capital Tactical Income Strategy ("Tactical Income”) seeks capital preservation with an emphasis on income generation as a key component to competitive total returns while minimizing risk and volatility.​

The asset allocation of Tactical Income is set between equities, preferred equities, fixed income and cash, with equities focused on what Hilton terms a “needs-based” stocks and sectors. In addition to the strategic asset allocation, Hilton performs deep diligence on individual securities in the portfolio to ensure we are invested in companies with strong balance sheets, consistent earnings and proven cash flow. It’s a balanced investment strategy that seeks to mitigate portfolio risk by creating a diversified portfolio of income producing securities that offer the potential for capital appreciation.

Prior to founding Hilton Capital, William Garvey was managing more than 100m in fixed income assets. It was during this period that he came to believe that he could maintain the stability of a fixed income portfolio while generating additional income and growth of principal with the addition of other income producing securities such as dividend paying common stocks and preferred equities, REITs and MLPs, among others. Thus, the Hilton Capital Tactical Income Strategy was born.

It’s important to understand that this is more than “picking stocks” to complement a fixed income portfolio. All potential investments are approached from a global macro-economic perspective, taking into account fiscal/monetary policy, interest rates, commodity pricing, government policy and general business conditions. Based on these perspectives, a top down analysis is assiduously applied to identify sectors and individual companies which fit the desired risk and income profile based on fundamental analysis of balance sheet, credit quality and income stability. In this process companies in which to invest are identified, as well as where in the capital structure investments will be made.


The Hilton Approach

The entire Hilton team was imbued with William Garvey’s disciplined approach to evaluating risk, balance and diversity. The portfolio is created with a strict focus on diversification and an understanding of the historical correlations of the assets to each other. Hilton Capital utilizes a formalized process to continually evaluate and adjust the portfolio and every move is overseen by an investment committee that adheres to the following rigors:

  • Transparent and disciplined
  • Tactical asset allocation galvanized by internal macroeconomic evaluations
  • Security selection driven by thorough fundamental analysis
  • Active management; keeping abreast of powerful, shorter-term market movements
  • Comprehensive risk management

At the forefront of every decision is a deep understanding of client needs.

Therefore, while Hilton Capital excels at portfolio management, its success is derived from the relationships it cultivates with its investors.

The three core tenets of our client-first approach guarantee:

  • Direct client access to senior investment professionals
  • A thorough understanding of client’s investment objectives and needs
  • Clear and concise communication of investment results

The decision making process is a team approach amongst the Chief Investment Officer William Garvey and Portfolio Managers Alexander Oxenham, Craig O’Neill and Tim Reilly.

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