Alternative Income Strategy

Alternative Income

Objective
The Westwood Alternative Income Strategy aims to generate absolute returns through a combination of current income and capital appreciation with low correlation to equity and fixed income markets.

Strategy Overview

  • Multi-strategy approach utilizes short duration high yield, convertible arbitrage and macro allocation to limit exposure to interest rates and other macroeconomic factors with low duration and a low risk profile.
  • Integrates a levered global convertible arbitrage strategy to potentially take advantage of market dislocations including earnings catalysts, credit ratings and mergers.
  • Seeks to enhance portfolio construction and reduce volatility risk through the active use of macro hedging strategies.
  • Potential for uncorrelated returns and attractive diversification benefits with traditional fixed income allocations and equity.
  • Incorporates Westwood Sensible Fees™ which attempts to achieve better alignment of fees and performance for investors.

*Previously Westwood Market Neutral Income Strategy.

Vehicles and Minimums

Separately Managed $50M

Key Characteristics
as of 06/30/21

Assets Under Management $152.21M
Inception Date 01/01/10
Holdings 68
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Performance (%)
as of 06/30/2021

QTDYTD1-Yr Annualized3-Yrs Annualized5-Yrs Annualized10-Yrs AnnualizedSince Inception
Alternative Income Strategy Gross of Fees0.132.4811.838.075.835.155.49
Alternative Income Strategy Net of Fees-0.032.1411.117.294.954.184.52
LIBOR USD 1 Month0.020.050.131.301.240.730.67
See disclosure

Why Westwood
We believe that many factors provide us with a competitive advantage in the convertible bond market, namely:

  • Dedicated Team with Extensive Experience in Fixed Income and Convertible Bonds. Adrian Helfert and Seth Gold, portfolio managers of the Alternative Income strategy, have 36 years of collective experience in the fixed income and convertible bond arena.
  • Synergies in process with long-only and convertible bond arbitrage strategy are more important than ever. We achieve significant synergies from managing both long-only and long/short convertible arbitrage strategies, which not only provides us with valuable insights into the global convertible market but also ensures that our investment team considers the pricing influences of both long-only investors and arbitrage funds.
  • Employee Ownership. Ownership creates a vested interest for our employees in generating superior performance in all aspects of company operations.

Alternative Income Strategy
Credit Quality Breakdown (%)

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Data as of June 30, 2021. Data Source: © 2021 FactSet Research Systems Inc. All Rights Reserved. The information presented reflects that of a representative account and is shown as supplemental information to the GIPS compliant disclosure included in the appendix. Please see appendix for full performance disclosures. The disclosures provided are considered an integral part of this presentation. The summation of percentages reported may not equal 100% due to rounding discrepancies.

Alternative Income Strategy
Regional Allocation (%)

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Data as of June 30, 2021. Data Source: © 2021 FactSet Research Systems Inc. All Rights Reserved. The information presented reflects that of a representative account and is shown as supplemental information to the GIPS compliant disclosure included in the appendix. Please see appendix for full performance disclosures. The disclosures provided are considered an integral part of this presentation. The summation of percentages reported may not equal 100% due to rounding discrepancies.

Alternative Income Strategy Portfolio Managers

Adrian Helfert
Senior Vice President, Chief Investment Officer, Multi-Asset
Chris Hartman
Vice President, Portfolio Manager

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Westwood Funds are distributed by SEI Investments Distribution Co. (SIDCO).

Check the background of this firm.