Commentary

2Q2025 - Credit Opportunities Fund Commentary

Below-investment-grade credit faced early setbacks following the Liberation Day announcement but rebounded in May and June.
  • In Q2 2025, the Polen Credit Opportunities Fund  (the “Fund”) returned 1.14% versus the 3.57% return of the ICE BofA U.S. High Yield Index.
  • Leveraged loans continued to underperform high yield bonds throughout the second quarter.
  • Grubhub, Inc. and Aveanna Healthcare contributed the most to total returns, while Sportsnet New York (“SNY”) and Realtruck (Truck Hero) were the largest detractors during the quarter.  
  • Polen Capital did not make any meaningful changes to fund positioning in the second quarter.
  • Heading into the second half of 2025, our key concerns—market volatility, widening spreads, and Fed policy amid ongoing trade and geopolitical tensions—remain unchanged from the first quarter.
  • In our view, remaining patient and not overreaching for yield will leave our portfolios well positioned to take advantage of compelling opportunities in this period of instability.

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