Dividend Investing Ideas Center
Critical Facts You Need to Know About Preferred Stocks
Have you ever wished for the safety of bonds, but the return potential...
Name
As of 10/11/2024Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
YTD Return
7.2%
1 yr return
11.4%
3 Yr Avg Return
2.0%
5 Yr Avg Return
3.6%
Net Assets
$300 M
Holdings in Top 10
30.3%
Expense Ratio 1.38%
Front Load N/A
Deferred Load N/A
Turnover 74.00%
Redemption Fee 1.00%
Standard (Taxable)
$5,000
IRA
N/A
Fund Type
Open End Mutual Fund
Name
As of 10/11/2024Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
The Fund pursues its investment objective by seeking to outperform the broader high yield market over a complete credit cycle. The “credit cycle” is a cyclical event that generally occurs over a several year timeframe as access to credit increases or decreases for borrowers.
The Fund seeks to achieve its objective mainly by investing in fixed- and floating-rate high yield fixed income securities with a focus on “middle market” issuers in the United States and, to a much lesser extent, Canada. The Adviser considers middle market companies to be those with normalized earnings before interest, tax and depreciation (“EBITDA”) in the range of $75-250 million. The Adviser believes that the flexibility to invest, sell, and reinvest throughout the capital structure of an issuer (and in particular, in both more senior bank loans and more junior high yield bonds) will enable the Adviser to tailor its investment approach to the specific credit-related circumstances of that issuer as they may change from time to time and thereby select the most attractive opportunities for the Fund.
The Adviser intends to invest assets of the Fund primarily in credit instruments that are rated below investment grade by some or all relevant independent rating agencies, including Moody’s Investors Service, Standard and Poor’s Rating Services and Fitch Ratings (including a significant portion of such assets in credit instruments in the lower tier of the high yield market that are rated B and below). Additionally, certain other high yield securities may be unrated by rating agencies, but determined by the Adviser to be of similar quality as other below investment grade bonds and credit instruments and accordingly purchased for investment by the Fund. The Fund does not have a percentage limitation on investing in securities that are rated below investment grade.
High yield fixed income securities include high yield corporate bonds (commonly known as “junk bonds”), senior loans, convertible bonds, preferred stock, and other types of debt instruments (including, without limitation, unregistered (Rule 144A) securities, floating and variable rate securities and other restricted fixed income securities to the extent permitted by the Investment Company Act of 1940, as amended (the “1940 Act”)). In addition, the Fund may also purchase equity securities or otherwise hold positions in equity or other assets that the Fund receives as part of a reorganization process of a high yield issuer, and the Fund may hold those assets until such time as the Adviser believes that a disposition is most advantageous. From time to time, the Fund may make investments in distressed or defaulted securities or in issuers that are in bankruptcy. Although the Fund does not have any maturity or duration requirements, the Fund typically holds securities that, on average, have a shorter maturity and duration than the maturity and duration of broad-based high yield market indices.
In making these investments, the Adviser seeks to purchase instruments that the Adviser believes are undervalued and offer a compelling risk/reward ratio. Specifically, the Adviser’s investment process attempts to exploit inefficiencies in the high yield credit markets by adhering to a disciplined, bottom-up, fundamentally-oriented investment process with an emphasis
on downside protection. The Adviser believes that its portfolios can appropriately balance these risks with the potential reward by purchasing securities of companies at deep discounts to intrinsic enterprise value, thereby providing significant cushion from a loan-to-value perspective; by properly understanding, as part of the Adviser’s due diligence process, the relevant legal aspects of a bond indenture or loan document with a focus on downside or bankruptcy scenarios; and by managing liquidity in the portfolio by limiting the number and size of positions considered by the Adviser to be less liquid in nature. This process applies value investing principles through exhaustive research coupled with financial, structural and legal analysis, including a review of bankruptcy law considerations where applicable. The foundation of this investment process is to derive an accurate, real-time valuation of a target company and to only invest in securities of that company’s capital structure that offer a significant margin of safety coupled with strong total return potential. “Significant margin of safety” means that the Fund endeavors to identify securities with a low loan-to-value ratio where there is accordingly low risk that the subject security will default and experience principal losses as a result. By utilizing such a fundamental, bottom-up approach to investing, the Adviser seeks to add value first and foremost through security selection.
The Adviser intends to manage a relatively concentrated portfolio typically comprising between 50-90 issuers and 60-120 issues. The Fund has adopted an investment policy providing that under normal circumstances, the Fund will invest at least 80% of the value of its assets (net assets plus the amount of any borrowings for investment purposes) in high yield fixed income securities. This 80% policy may be changed by the Trust’s Board of Trustees without shareholder approval upon 60 days’ written notice to shareholders.
Period | DDJRX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
YTD | 7.2% | -5.8% | 15.9% | 47.41% |
1 Yr | 11.4% | -1.2% | 20.3% | 88.67% |
3 Yr | 2.0%* | -14.5% | 21.1% | 69.54% |
5 Yr | 3.6%* | -12.0% | 37.3% | 60.70% |
10 Yr | N/A* | -5.0% | 20.2% | N/A |
* Annualized
Period | DDJRX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
2023 | 2.8% | -4.7% | 14.3% | 91.07% |
2022 | -17.4% | -33.4% | 3.6% | 82.13% |
2021 | 0.2% | -8.4% | 8.2% | 41.67% |
2020 | -3.9% | -13.2% | 302.7% | 96.67% |
2019 | -2.2% | -4.4% | 13.3% | 99.46% |
Period | DDJRX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
YTD | 7.2% | -5.8% | 15.9% | 47.41% |
1 Yr | 11.4% | -1.2% | 20.3% | 88.67% |
3 Yr | 2.0%* | -14.5% | 21.1% | 69.54% |
5 Yr | 3.6%* | -12.0% | 37.3% | 60.70% |
10 Yr | N/A* | -5.0% | 20.2% | N/A |
* Annualized
Period | DDJRX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
2023 | 11.8% | -4.7% | 18.7% | 60.71% |
2022 | -12.1% | -33.4% | 47.8% | 79.51% |
2021 | 5.9% | -8.4% | 12.4% | 31.12% |
2020 | 3.1% | -9.6% | 325.6% | 83.54% |
2019 | 1.5% | -3.8% | 19.4% | 99.64% |
DDJRX | Category Low | Category High | DDJRX % Rank | |
---|---|---|---|---|
Net Assets | 300 M | 3.13 M | 23.6 B | 67.96% |
Number of Holdings | 97 | 2 | 3879 | 94.63% |
Net Assets in Top 10 | 90.8 M | -492 M | 5.25 B | 50.89% |
Weighting of Top 10 | 30.28% | 4.2% | 146.0% | 7.97% |
Weighting | Return Low | Return High | DDJRX % Rank | |
---|---|---|---|---|
Bonds | 97.27% | 0.00% | 145.36% | 25.57% |
Cash | 2.31% | -52.00% | 48.02% | 70.57% |
Stocks | 0.43% | 0.00% | 99.64% | 47.09% |
Preferred Stocks | 0.00% | 0.00% | 4.97% | 78.21% |
Other | 0.00% | -39.08% | 99.96% | 75.45% |
Convertible Bonds | 0.00% | 0.00% | 17.89% | 98.37% |
Weighting | Return Low | Return High | DDJRX % Rank | |
---|---|---|---|---|
Utilities | 0.00% | 0.00% | 100.00% | 96.44% |
Technology | 0.00% | 0.00% | 33.17% | 96.06% |
Real Estate | 0.00% | 0.00% | 86.71% | 94.93% |
Industrials | 0.00% | 0.00% | 93.12% | 97.94% |
Healthcare | 0.00% | 0.00% | 22.17% | 94.93% |
Financial Services | 0.00% | 0.00% | 100.00% | 96.81% |
Energy | 0.00% | 0.00% | 100.00% | 98.69% |
Communication Services | 0.00% | 0.00% | 99.99% | 97.94% |
Consumer Defense | 0.00% | 0.00% | 100.00% | 2.44% |
Consumer Cyclical | 0.00% | 0.00% | 100.00% | 95.87% |
Basic Materials | 0.00% | 0.00% | 100.00% | 95.87% |
Weighting | Return Low | Return High | DDJRX % Rank | |
---|---|---|---|---|
US | 0.39% | 0.00% | 99.64% | 48.29% |
Non US | 0.04% | -0.01% | 0.83% | 7.80% |
Weighting | Return Low | Return High | DDJRX % Rank | |
---|---|---|---|---|
Corporate | 97.08% | 0.00% | 100.00% | 28.66% |
Derivative | 0.00% | -14.19% | 42.26% | 69.92% |
Cash & Equivalents | 0.00% | 0.00% | 48.02% | 95.77% |
Securitized | 0.00% | 0.00% | 97.24% | 81.76% |
Municipal | 0.00% | 0.00% | 1.17% | 64.66% |
Government | 0.00% | 0.00% | 99.07% | 75.08% |
Weighting | Return Low | Return High | DDJRX % Rank | |
---|---|---|---|---|
US | 97.27% | 0.00% | 126.57% | 17.24% |
Non US | 0.00% | 0.00% | 96.91% | 78.37% |
DDJRX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Expense Ratio | 1.38% | 0.02% | 38.33% | 24.84% |
Management Fee | 0.70% | 0.00% | 1.75% | 85.90% |
12b-1 Fee | 0.25% | 0.00% | 1.00% | 42.95% |
Administrative Fee | N/A | 0.00% | 0.50% | N/A |
DDJRX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Front Load | N/A | 2.25% | 5.75% | N/A |
Deferred Load | N/A | 1.00% | 5.00% | N/A |
DDJRX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Max Redemption Fee | 1.00% | 1.00% | 2.00% | 78.57% |
Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Higher turnover means higher trading fees.
DDJRX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Turnover | 74.00% | 1.00% | 255.00% | 70.69% |
DDJRX | Category Low | Category High | DDJRX % Rank | |
---|---|---|---|---|
Dividend Yield | 7.80% | 0.00% | 11.76% | 0.65% |
DDJRX | Category Low | Category High | Category Mod | |
---|---|---|---|---|
Dividend Distribution Frequency | Monthly | Annual | Monthly | Monthly |
DDJRX | Category Low | Category High | DDJRX % Rank | |
---|---|---|---|---|
Net Income Ratio | 5.75% | -2.39% | 9.30% | 7.12% |
DDJRX | Category Low | Category High | Capital Mode | |
---|---|---|---|---|
Capital Gain Distribution Frequency | Annually | Annually | Annually | Annually |
Date | Amount | Type |
---|---|---|
Sep 30, 2024 | $0.047 | OrdinaryDividend |
Aug 30, 2024 | $0.049 | OrdinaryDividend |
Jul 31, 2024 | $0.048 | OrdinaryDividend |
Apr 30, 2024 | $0.042 | OrdinaryDividend |
Mar 28, 2024 | $0.048 | OrdinaryDividend |
Feb 29, 2024 | $0.046 | OrdinaryDividend |
Jan 31, 2024 | $0.053 | OrdinaryDividend |
Dec 14, 2023 | $0.045 | OrdinaryDividend |
Nov 16, 2023 | $0.041 | OrdinaryDividend |
Oct 19, 2023 | $0.058 | OrdinaryDividend |
Sep 14, 2023 | $0.041 | OrdinaryDividend |
Aug 17, 2023 | $0.042 | OrdinaryDividend |
Jul 20, 2023 | $0.055 | OrdinaryDividend |
Jun 15, 2023 | $0.052 | OrdinaryDividend |
May 18, 2023 | $0.054 | OrdinaryDividend |
Apr 20, 2023 | $0.055 | OrdinaryDividend |
Mar 16, 2023 | $0.049 | OrdinaryDividend |
Feb 16, 2023 | $0.054 | OrdinaryDividend |
Jan 19, 2023 | $0.053 | OrdinaryDividend |
Dec 15, 2022 | $0.044 | OrdinaryDividend |
Nov 17, 2022 | $0.059 | OrdinaryDividend |
Oct 20, 2022 | $0.050 | OrdinaryDividend |
Sep 15, 2022 | $0.043 | OrdinaryDividend |
Aug 18, 2022 | $0.059 | OrdinaryDividend |
Jul 21, 2022 | $0.028 | OrdinaryDividend |
Jun 16, 2022 | $0.037 | OrdinaryDividend |
May 19, 2022 | $0.040 | OrdinaryDividend |
Apr 21, 2022 | $0.035 | OrdinaryDividend |
Mar 17, 2022 | $0.037 | OrdinaryDividend |
Jan 20, 2022 | $0.032 | OrdinaryDividend |
Dec 16, 2021 | $0.036 | OrdinaryDividend |
Nov 18, 2021 | $0.042 | OrdinaryDividend |
Oct 21, 2021 | $0.052 | OrdinaryDividend |
Sep 16, 2021 | $0.032 | OrdinaryDividend |
Aug 19, 2021 | $0.042 | OrdinaryDividend |
Jul 22, 2021 | $0.040 | OrdinaryDividend |
Jun 17, 2021 | $0.034 | OrdinaryDividend |
May 20, 2021 | $0.037 | OrdinaryDividend |
Apr 22, 2021 | $0.048 | OrdinaryDividend |
Mar 18, 2021 | $0.035 | OrdinaryDividend |
Feb 18, 2021 | $0.039 | OrdinaryDividend |
Jan 21, 2021 | $0.036 | OrdinaryDividend |
Dec 17, 2020 | $0.064 | OrdinaryDividend |
Nov 19, 2020 | $0.035 | OrdinaryDividend |
Oct 22, 2020 | $0.038 | OrdinaryDividend |
Sep 17, 2020 | $0.058 | OrdinaryDividend |
Aug 20, 2020 | $0.031 | OrdinaryDividend |
Jul 23, 2020 | $0.044 | OrdinaryDividend |
Jun 18, 2020 | $0.048 | OrdinaryDividend |
May 21, 2020 | $0.051 | OrdinaryDividend |
Apr 23, 2020 | $0.063 | OrdinaryDividend |
Mar 19, 2020 | $0.050 | OrdinaryDividend |
Feb 20, 2020 | $0.048 | OrdinaryDividend |
Jan 23, 2020 | $0.035 | OrdinaryDividend |
Dec 19, 2019 | $0.053 | OrdinaryDividend |
Nov 21, 2019 | $0.052 | OrdinaryDividend |
Oct 24, 2019 | $0.036 | OrdinaryDividend |
Sep 19, 2019 | $0.053 | OrdinaryDividend |
Aug 22, 2019 | $0.060 | OrdinaryDividend |
Jul 25, 2019 | $0.072 | OrdinaryDividend |
Start Date
Tenure
Tenure Rank
Jun 01, 2016
6.0
6.0%
Mr. Santonelli joined DDJ in 2004 and has more than 14 years of experience in sourcing, analyzing, and managing investments across a variety of industries. Mr. Santonelli serves as co-portfolio manager of DDJ’s U.S. Opportunistic High Yield strategy, portfolio manager of DDJ’s Total Return Credit strategy, and assistant portfolio manager of DDJ's Bank Loan strategy. He is also a member of the Investment Review Committee. Mr. Santonelli serves as a member of the board of directors of two portfolio companies. Mr. Santonelli received his BA from Amherst College.
Start Date
Tenure
Tenure Rank
Jun 01, 2016
6.0
6.0%
Mr. Sherman joined DDJ in 2007 and has more than 13 years of experience in sourcing, analyzing, and managing investments across a variety of industries. Mr. Sherman serves as co-portfolio manager of DDJ’s U.S. Opportunistic High Yield strategy, portfolio manager of DDJ’s Bank Loan strategy, and assistant portfolio manager of DDJ's Total Return Credit strategy. He is also a member of the Investment Review Committee. Prior to joining DDJ, Mr. Sherman was an associate in the Healthcare Group at Thoma Cressey Equity Partners, focusing on private equity investments in middle-market companies. While at Thoma Cressey Equity Partners, Mr. Sherman participated in the due diligence of new standalone investments and tack-on acquisitions for existing portfolio companies. Prior to joining Thoma Cressey Equity Partners, Mr. Sherman was in the Investment Banking Division of Citigroup where he was an analyst in the Global Healthcare Group. While at Citigroup, he participated in the execution of initial public offerings, private placements, mergers and acquisitions, recapitalizations, and other corporate finance transactions. Mr. Sherman graduated magna cum laude with a BBA from the University of Notre Dame.
Start Date
Tenure
Tenure Rank
Jun 01, 2016
6.0
6.0%
Prior to forming DD in 1996, from 1990 to 1996, Mr. Breazzano was a vice president and portfolio manager in the High Income Group at Fidelity Investments. In addition, Mr. Breazzano co-managed the distressed investing operation at Fidelity. Prior to joining Fidelity Investments in 1990, from 1985 to 1990, Mr. Breazzano was a vice president and portfolio manager at T. Rowe Price Associates. Mr. Breazzano received his MBA from the Johnson School at Cornell University and graduated cum laude with a BA from Union College.
Category Low | Category High | Category Average | Category Mode |
---|---|---|---|
0.13 | 37.79 | 7.3 | 8.17 |
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