The Acquirers Podcast

Jay D. Hatfield, Portfolio Manager InfraCap Small Cap, Income, MLPs and REIT Preferreds | S08 E05

9 snips
Feb 12, 2026
Guest
Jay Hatfield
Jay Hatfield, founder and portfolio manager at InfraCap focused on monthly income strategies and preferreds. He explains InfraCap’s income-focused ETFs, how preferreds and high-yield instruments supply steady cash, and why short-dated covered calls boost yield without capping upside. He also discusses leverage management, liquidity mechanics, and macro risks that shape income investing.
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ADVICE

Verify Yield With SEC Metrics

  • Check the SEC 30-day yield to ensure ETF distributions reflect real cash flow rather than return of capital.
  • Be cautious of very high common-stock dividend yields; prefer bonds or preferreds for double-digit yields.
ADVICE

Use Low, Active Leverage

  • Use very low and actively managed leverage (around 15–20% for equities, lower for preferreds) to modestly enhance income.
  • Reduce leverage during market stress and monitor portfolio risk continuously.
INSIGHT

ETF Structure Lowers Liquidity Risk

  • ETF in-kind creation/redemption mechanics remove the need to sell holdings to meet redemptions and lower trading costs.
  • Holding listed, liquid securities permits rapid de-leveraging and intraday liquidity management.
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