The Cratus High Income Strategy is designed to provide high yield with minimal downside risk. This strategy invests in very short term high income bond ETFs with a small position invested in small- and mid-cap high dividend stocks.
Overall risk is minimized through extensive due diligence on all companies and ETFs which Cratus Capital includes in this strategy. Interest rate risk is virtually non-existent as these bonds have very low durations. High dividend paying stocks are added opportunistically for diversification but may not represent for more than 20% of the total market value of the portfolio. This is a low volatility strategy.