FX2 Portfolio: Benchmark Performance Review

Durig Capital’s Fixed Income 2 (FX2) Portfolio Review

  • Performance Review of Durig Capital’s Fixed Income 2 (FX2) Managed Income Portfolio
  • Up 10.49% YTD
  • Up 20.94% Trailing 1 Year Return
  • Up 14.49% Trailing 3 Year Return
  • Up 10.14% Trailing 5 Year Return

The relatively standard benchmarks shown below are compared to the Year-to-Date (YTD) and Trailing 1 year, Trailing 3 year and Trailing 5 year returns, provided by the High-Yield Bond Mutual Fund database provided by Morningstar. We estimate that Morningstar tracks the performance of and benchmarks close to 800 High-Yielding Bond Mutual Funds, and on July 2nd, 2018, this is how our clients aggregated Fixed Income 2 (FX2) Managed Income Portfolios compared to Morningstar’s high-yield bond fund database:


Year-to-Date, FX2 aggregated returns are up 10.49%.

  1. Highland Opportunistic Credit Z (HNRZX), 7.23% YTD
  2. Highland Opportunistic Credit A (HNRAX), 7.01% YTD
  3. Highland Opportunistic Credit C (HNRCX), 6.73% YTD
  • The average YTD return among the high-yield bond mutual funds listed was  – 0.17%

Trailing 1 Year

For a Trailing 1 Year period, FX2 aggregated returns were up 20.94%.

  1. Highland Opportunistic Credit Z (HNRZX), 10.93%
  2. Highland Opportunistic Credit A (HNRAX), 10.77%
  3. Highland Opportunistic Credit C (HNRCX), 10.21%
  • The average Trailing 1 Year return among the high-yield bond mutual funds listed was 2.27%

Trailing 3 Year

For a Trailing 3 Year period, FX2 aggregated returns were up 14.49%.

  1. Artisan High Income Advisor (APDFX), 7.29%
  2. Artisan High Income Investor (ARTFX), 7.10%
  3. Fairholme Focused Income (FOCIX), 7.09%
  • The average Trailing 3 Year return among the high-yield bond mutual funds listed was 4.18%

Trailing 5 Year

For a Trailing 5 Year period, FX2 aggregated returns were up 10.14%.

  1. Fidelity Capital & Income (FAGIX), 7.05%
  2. T. Rowe Price US High Yield I (TUHIX), 6.96%
  3. Fidelity Advisor High Income Advantage I (FAHCX), 6.84%
  • The average Trailing 5 Year return among the high-yield bond mutual funds listed was 4.35%

FX2 Risk & Reward

When benchmarked against Bloomberg Barclays US Aggregate Bond Index, FX2 provides:

  • Excess Return of 11.82%
  • Alpha (active return on investment) of 12.75
  • Beta (correlation to overall market) of 0.10
  • Max Drawdown of -15.38
  • Upside Capture Ratio of 224.95
  • Downside Capture Ratio of -123.60

About Durig Capital

Durig Capital provides investors with a specialized, transparent fiduciary service at a very low cost. Our FX2 (Discretionary Management) Portfolio over time has greatly outperformed our FX1 (Non-discretionary) Portfolio, giving significantly higher returns (at times double the returns of FX1). Our professional service enables access to a broad spectrum of bond, high yields, and lower price points that are often found in less efficient markets, but not evidenced in many bond services.

Most of our client accounts are custodied in their own name at TD Ameritrade Institutional, a large discount service provider that is SPIC insured, or at Interactive Brokers. We have now started offering our highly successful FX2 service to clients of other Registered Investment Advisors through segregated accounts at TD Ameritrade. Please ask us to learn how this might work for you and your current advisor.

We track thousands of bond issues and their underlying fundamentals for months, sometimes years, before finding any that achieve or surpass the targeted criteria we have found to be successful.  Our main priority is to provide the best opportunities for our clients.  Our bond reviews are first distributed to our clients, then published on our website and our free email newsletter, and lastly on the Internet and distributed to thousands of prospective clients and competitive firms. Bond selections may not be published if they have very limited availability or liquidity, or viewed as not being in the best interests of our clients. When high yielding bonds with improving fundamentals are acquired at lower costs, Durig Capital believes that investors will appreciate earning higher incomes with our superior high income, low cost, fiduciary services.

Please note that all yield and price indications are shown from the time of our research.  Our reports are never an offer to buy or sell any security. We are not a broker/dealer, and reports are intended for distribution to our clients. As a result of our institutional association, we frequently obtain better yield/price executions for our clients than is initially indicated in our reports.  We welcome inquiries from other advisors that may also be interested in our work and the possibilities of achieving higher yields for retail clients.

Disclosure: Past performance is no guarantee of future results. FX2 is a composite of individual (segregated) bond accounts comprised of individual bond positions, with return averages both higher and lower than the FX2 composite returns. Individual (segregated) accounts are a different investment vehicle than bond funds, offering more easily customized asset allocation and tax accountability compared to having all the investments held in one single large pool.

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