INVESTING
The investment experience at The Bahnsen Group starts with our commitment to foundational principles. It is manifested in our rigorous implementation of a dividend growth philosophy. And we are not afraid to go outside the box in the bespoke solutions we source and create for clients. In our opinion, the entire portfolio construction process is a differentiator that we refer to as Operation Magnify whereby seven different building blocks are utilized to create a comprehensive and holistic portfolio for each client, the allocation of which is custom-tailored client by client.
CORE DIVIDEND is the foundational building block of every portfolio at TBG, comprising 25–35 actively managed dividend growth stocks. As our core strategy, it is designed to deliver both income and long-term growth. Dividends are reinvested for accumulators to maximize compounding, while they are paid out in cash for those making withdrawals. The strategy is bottom-up and company-driven, with minimal sector constraints, and offers customization based on client preferences around personal values, tax considerations, and other unique needs.
INCOME ENHANCEMENT is designed for select clients seeking an added yield boost, particularly those with high cash-flow needs. This strategy focuses on high-coupon investments and is not intended to be low beta. It is actively and energetically managed across a variety of high-income-generating vehicles, including listed BDCs, preferred stocks, mortgage REITs, and other specialized strategies.
GROWTH ENHANCEMENT is tailored for select clients seeking a growth boost and willing to accept higher levels of volatility in pursuit of greater total return. This strategy includes exposure to small-cap equities, emerging markets, and other growth-oriented investments, all managed with a bottom-up approach. It is enthusiastically implemented through a combination of funds, ETFs, and individual securities.
BORING BONDS address the capital preservation needs of clients, offering both taxable and tax-free options. These portfolios consist of individual bonds managed by an external manager under TBG’s close supervision. Taxable holdings typically include government and investment-grade corporate bonds, while tax-free holdings are focused on high-grade municipals. Duration and credit exposure are actively managed to provide opportunities for added value, with a focus on generating current income and preserving capital.
CREDIT is distinct from traditional bond strategies, offering higher income potential but with more equity-like volatility, particularly during market stress. Available in both taxable and tax-free versions, this strategy utilizes funds and ETFs to ensure diversification and liquidity.
It is systematically managed across a broad range of high-yield assets, including syndicated loans, structured credit, emerging market debt,
and more.
ALTERNATIVES provide diversification by offering exposure to sources of risk and return outside traditional asset classes. TBG manages two actively managed, single K-1 structures: Alternative Income Solutions (TBG AIS) and Alternative Growth Solutions (TBG AGS), each consisting of 10+ independent strategies. These solutions are designed for low beta and low correlation to public markets, with no internal management fee to TBG. They offer flexible sizing and dynamic rebalancing options, backed by intensive manager diligence and oversight. Additionally, TBG provides access to a wide array of alternative strategies, including hedge funds, private equity, private credit, and real estate, all supported by direct relationships with portfolio managers.
DIRECTS/ILLIQUIDS are suited for select ultra-high-net-worth clients with a strong return appetite and no immediate need for liquidity. These investments include LP positions in real estate and other bespoke business ventures, such as hospitality, multi-family, and industrial developments, as well as closely held businesses. The strategy is opportunistic and high risk/reward, driven by access to unique deal flow in private markets.