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
The objectives of this strategy are i) to preserve capital, ii) to provide returns in excess of inflation and the risk‐free rate‐of‐return plus a pre-determined risk premium, and iii) to achieve this with low volatility over a complete market cycle. We carefully construct a multi-asset allocation utilizing the entire capital structure including preferred equities and corporate/government debt coupled with 20-30 of our highest conviction equity investments. The flexibility of our asset allocation enables us to capitalize on ever-changing market conditions and dislocations by remaining nimble and ready to modify portfolios when appropriate. We believe this provides the ability to capture positive swings in the market, while still maintaining an appropriate level of less‐volatile positions in the portfolio.