1Q2025 - Credit Opportunities Fund Commentary
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.
- Over the first quarter of 2025, the Polen Credit Opportunities Fund (the “Fund”) underperformed the ICE BofA U.S. High Yield Index.
- Declining yields and spread widening led to mixed results for below investment grade credit with positive performance front loaded in January and February. Leveraged loans experienced some weakness in the first quarter, underperforming high yield bonds.
- SportsNet New York and Baffinland Iron Mines Corporation were the top contributors to total returns, while Resource Label Group and Truck Hero detracted the most significantly.
- Polen Capital did not make any meaningful changes to fund positioning in Q1 2025.
- As we enter 2025, our primary concerns today include continued market volatility, spread widening, and the Fed’s policy moves, potentially in response to ongoing trade wars and geopolitical risks.
- In our view, remaining patient and not overreaching for yield will leave our Fund well positioned to take advantage of compelling opportunities as the cycle ages