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.