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IncomeWeeklyHigh-Yield Credit Income · Capital preservation

High Yield

A weekly model that rotates between high-yield credit and cash, built for steady income with tightly controlled downside.

Hypothetical track record Dec 1988 – May 2026 · 37.4 years · Gross of fees · Credit + cash view
+10.29%
Annualized return
gross of fees, hypothetical
−6.95%
Maximum drawdown
peak-to-trough, worst case
0.86
Sortino ratio
downside-risk adjusted
77.73%
Batting average
share of positive months
Growth of $1,000
Hypothetical · log scale · Dec 1988 = $1,000
High Yield High-Yield Credit (Buy & Hold)

Two-digit annualized returns with a maximum drawdown under 7% — and positive results in nearly 8 of every 10 months across more than three decades of compounding.

Drawdown — the risk argument
Decline from prior peak · model vs benchmark
High Yield High-Yield Credit

For an income strategy, the shallowness of the worst case is the point. While credit markets fell sharply in 2008, the model's deepest drawdown was held to −6.95%.

What this model does

Steady income, with the downside tightly controlled.

High Yield is an income-oriented model on the high-yield credit market. Each week it decides whether to hold high-yield credit or move to cash.

Its signature is consistency: a high proportion of positive months and a shallow worst-case drawdown, aimed at investors who prioritize steady income and capital preservation over maximum growth.

Time invested85.59%
Signals / year0.75
Win / loss ratio124.99%
BenchmarkHigh-yield credit
Monthly & annual returns
Hypothetical · most recent first · 2026 back to 1989 · heat-mapped
Full statistics

Everything an auditor would ask for.

Annualized return
10.29%
Max drawdown
−6.95%
Sharpe ratio
0.49
Sortino ratio
0.86
Batting average
77.73%
Win / loss ratio
124.99%
% Time invested
85.59%
Ulcer index
1.60
Signals / year
0.75
Study period
Dec 1988 – May 2026
Span
37.4 yrs
Benchmark
High-yield B&H
Important disclosures

All performance shown is hypothetical and back-tested — it does not reflect actual trading with client assets and has inherent limitations (designed with the benefit of hindsight; may not reflect the impact of real market conditions). Past performance is not indicative of future results.

Results are gross of fees; transaction / custodial fees and taxes are not reflected and would reduce results. This is not an offer to sell or a solicitation to buy any investment. Charts use representative illustrative data; final disclaimer wording to be confirmed with counsel / compliance.

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