Alex Oxenham of Hilton Capital Management - Tactical Income Strategies

Jun 6, 2023

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In pursuing financial success, investors seek strategies that offer attractive returns and prudent risk management. As strategic decision-making is key to optimizing returns and weathering market volatility, tactical income strategies have emerged as a promising solution. By analyzing macroeconomic factors, assessing market trends, and identifying the most attractive income-generating opportunities, portfolio managers can make informed decisions about asset allocation, selecting the most promising income-generating securities while avoiding those with the highest risk.

In this episode, Rusty and Robyn talk with Alex Oxenham, Portfolio Manager and Co-CIO at Hilton Capital Management. Alex joined Hilton Capital in 2011 from HSBC Private Bank. As a portfolio manager, Alex looks for opportunities throughout the entire investable universe. He selects investments primarily in the context of a macro-economic backdrop which provides a solid framework for idea generation.

With a combined knowledge of debt and equity markets and successfully institutionalizing Hilton's research and investment process, Alex talks about Tactical Income strategies, how they work, and how to incorporate them into investment portfolios.

Key Takeaways

[03:36] - Alex's career highlights and how he got to Hilton Capital Management.
[04:44] - Alex's investment philosophy and tactical income strategy.
[06:03] - The macro framework Alex uses for stocks and bonds.
[07:54] - The time frame Alex looks at when making investment decisions.
[08:57] - The kind of investors best served by tactical income.
[10:18] - How tactical income fits into a portfolio.
[12:03] - Alex's rule of thumb for the overall stock market.
[13:00] - What the current portfolio yield looks like.
[16:20] - The most challenging aspect of Alex's job at Hilton.
[20:03] - One of Alex's favorite investment ideas.
[21:42] - How Alex maintains his energy to perform at a high level.
[24:32] - The people Alex is grateful for professionally.
[27:13] - Alex's recommendations for content.

Quotes

[07:25] - "When we think about positioning our tactical strategies at Hilton, we think about whether the economy's growing or shrinking or maintaining a neutral base. And then, we adjust our allocations based on those rates of changes that occur in the macro environment." ~ Alex Oxenham

[09:22] - "For 21 years, we have been trying to deliver a consistent standard deviation for clients through a market cycle. And what we found from a practical standpoint is that 60% to 30% equity waiting and then fixed income and cash make up the difference." ~ Alex Oxenham

[13:23] - "If you target a yield, you end up having undue influence on the portfolio. You have factor exposure to whatever yield goes out of favor. So you end up not being able to control your standard deviation." ~ Alex Oxenham

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1318-OPS-5/12/2023