Tactical Income Strategy

Hilton Capital Management believes that an actively managed multi-asset portfolio of income producing securities can preserve capital, minimize volatility, and provide competitive total returns over a variety of market cycles.
The Tactical Income strategy actualizes this investment philosophy through a disciplined approach to balancing fixed income investments with income producing equity-based securities. The investment process is guided by thorough fundamental analysis overlaid on tactical asset allocation which is determined by the investment committee’s macroeconomic perspectives.

At a Glance

Portfolio Highlights

  • Balanced tactical management - the strategy will judiciously allocate amongst equity, fixed income and cash to achieve portfolio objectives.
  • Macro-economic oversight - asset class and security allocations informed by global macro-economic views as monitored by the sector committee.
  • Track record - The Tactical Income strategy has a 19 year audited track record applying this strategy through a variety of market cycles.
TI-Sector-Analysis-Q1_2020

TACTICAL INCOME

Sector Analysis

 
Common Stock		 20.70%
 
REITS		 2.94%
 
Cash		 22.80%
 
Fixed Income		 43.10%
 
Preferred Stock		 10.45%

As of March 31, 2020

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.

Hilton_Accordion4

Tactical Income

A Low Volatility Core Solution

Offers volatility reduction after periods of solid equity returns while still seeking out capital appreciation
Diversify sources of income generation for a portfolio in an environment with low global bond yields
Utilizing a tactical approach can suppress risk in a marketplace experiencing growth of price insensitive buyers and sellers.
Risk minimization, Yield, & Attractive Risk/Reward
Mobile-TI-Circle

Equity Portfolio Complement
Offers volatility reduction after periods of solid equity returns while still seeking out capital appreciation

Bond Portfolio Complement
Diversify sources of income generation for a portfolio in an environment with low global bond yields

Balanced Portfolio Enhancement
Utilizing a tactical approach can suppress risk in a marketplace experiencing growth of price insensitive buyers and sellers.

Outcome Oriented Standalone Solution

  • Risk minimization
  • Yield
  • Attractive Risk/Reward

December 31, 2001 to December 31, 2019

Portfolio Enhancement Opportunity

Conservative Allocation

30% ACWI, 70% AGG
  • Annualized Return 5.58%
  • Standard Deviation 5.01%
  • Max Drawdown -16.53%

Balanced Allocation

60% ACWI, 40% AGG
  • Annualized Return 6.39%
  • Standard Deviation 9.02%
  • Max Drawdown -35.21%

Aggressive Allocation

80% ACWI, 20% AGG
  • Annualized Return 6.76%
  • Standard Deviation 11.97%
  • Max Drawdown -45.75%
arrow
arrow
arrow
20% ACWI, 50% AGG, 30% Hilton
  • Annualized Return 6.21%
  • Standard Deviation 4.61%
  • Max Drawdown -14.84%
40% ACWI, 30% AGG, 30% Hilton
  • Annualized Return 6.79%
  • Standard Deviation 7.22%
  • Max Drawdown -27.90%
55% ACWI, 15% AGG, 30% Hilton
  • Annualized Return 7.14%
  • Standard Deviation 9.37%
  • Max Drawdown -36.66%

Incorporating Hilton Capital

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.
Hilton_Header1

1010 Franklin Avenue, Suite 300A
Garden City, NY 11530
(516) 693-5380
info@hiltoncm.com

Hilton Capital Management (“HCM” or the “Firm”) is a registered investment adviser with its principal place of business in the State of New York. HCM and its representatives are in compliance with the current registration requirements imposed upon registered investment advisers by those states in which HCM maintains clients. HCM may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements.
HCM’s website is limited to the dissemination of general information regarding its investment advisory services to United States residents residing in states where providing such information is not prohibited by applicable law. Accordingly, the publication of HCM’s website on the Internet should not be construed by any consumer and/or prospective client as HCM’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet. HCM does not provide tax or legal advice. You should contact your tax advisor and/or attorney before making any decisions with tax or legal implications. HCM does not make any representations as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to HCM’s website or incorporated herein, and takes no responsibility therefore. All such information is provided solely for convenience purposes and all users thereof should be guided accordingly. Past performance is no guarantee of future results. Any subsequent, direct communication by HCM with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.
For additional information about HCM, including fees and services, send for the Firm’s Disclosure Brochure using the contact information herein. Please read the Disclosure Brochure carefully before you invest.
Copyright 2020 Hilton Capital Management. All rights reserved.