Shikiar’s investment philosophy is predicated on the belief that over the long-term, equities will trade based on their underlying fundamentals. Companies that consistently generate profitable growth and free cash flow, as well as, having strong management teams that have shown to skillfully redeploy that cash flow, will over the long-term generate superior returns for investors. We approach our investments like owners of businesses, which enables us to focus on the underlying fundamentals. Securities are opportunistically and strategically invested across the corporate capital structure. Through our active internal and proprietary market research and analysis, we affirmatively overweight / underweight sectors and industries as appropriate and have zero exposure to industries we find unattractive. Both equity and fixed income related securities are invested with the aim of providing income and capital appreciation while limiting overall volatility.
Shikiar Strategic Income Strategy
Shikiar’s Strategic Income is designed for low‐correlated income‐generating investments seeking strong risk‐adjusted performance over a complete market cycle. First and foremost, our objective is to preserve capital, while simultaneously providing returns in excess of 400 bps above inflation plus the risk‐free rate‐of‐return over a complete market cycle with lower volatility. In addition, Shikiar Strategic Income’s flexible investment strategy utilizes a carefully constructed multi‐asset allocation of income producing securities that combines to produce a yield greater than the S&P 500. The portfolio’s asset allocation provides the flexibility to take advantage of ever-changing market conditions and various dislocations that may occur. Common equity securities can range up to 80% of the portfolio’s asset allocation diversified among 25-35 individual positions. This provides the ability to capture positive swings in the market, while still maintaining an appropriate level of less‐volatile positions in the portfolio.