The objective of the NIS preferred stock strategy is to provide returns well in excess of conventional fixed income investments — yet more stable returns than the equity market.

The $25 par preferred market is driven primarily by the retail investor, rather than large institutional investors. As a result, the market dynamics of preferred stocks are determined primarily by retail supply/demand characteristics rather than the factors that drive the institutional markets. The retail dynamics lend to a less efficient market. Trades tend to be relatively small in size, and while valuations typically follow the general trends of the broader markets, they tend to move on a lagged basis.

ASSET OVERVIEW

NIS has $362 Million in preferred stock assets under management

As of 6/30/18

$362
Million

STRATEGY AT A GLANCE

  • Employs an active long/short trading strategy investing primarily in $25/par board listed and $1000/par preferred and hybrid securities.
  • Takes advantage of an inefficient market. We aim to take advantage of an inefficient market by closely monitoring the marketplace and searching for relative value.
  • Enhanced liquidity. Most securities are traded on major public exchanges (95% NYSE), as well as over the counter by a number of dealers. This provides various avenues for trading and enhances the liquidity of the securities.
  • Does not use leverage.

PORTFOLIO MANAGEMENT

Jeffrey F. Parker
Lead Portfolio Manager, Preferred Stock
Mark R. Anderson, CFA
Chief Strategy Officer