1Q2026 - U.S. Opportunistic High Yield Commentary
The portfolio modestly outperformed in a challenging quarter marked by rising rates, widening spreads, and geopolitical uncertainty. With limited repositioning, the team emphasizes higher-quality credit selection and sees compelling opportunities emerging from increased market dispersion.
- Returns: -0.38% gross / -0.49% net vs. -0.55% (ICE BofA U.S. High Yield Index) in Q1 2026
- Top contributors: Covetrus, Inc.; Baffinland Iron Mines Corp.
- Largest detractors: Internet Brands; Kaseya Inc.
- Summary: In a volatile credit environment with rising rates and widening spreads, disciplined credit selection and a focus on higher-quality opportunities supported relative outperformance.