| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | -0.9% | -0.9% |
Amundi Chenavari Credit Fund delivered -1.09% net performance in March 2026, driven by Corporate (-55bps) and Financials (-61bps) strategies. The Iran conflict escalation created a defining macro shock, with oil markets experiencing dramatic volatility as Brent crude surged over 7% in a single day and peaked at $119/bbl. This energy shock fed into inflation expectations, triggering synchronized selloffs across global equities and bonds. European markets were particularly affected due to higher energy exposure, with the high yield benchmark declining -2.35% and spreads widening over 50bp. The manager tactically increased shorts on energy-sensitive issuers and reduced AT1 exposure, particularly in Greek banks and low-reset instruments where extension risk appeared underpriced. Key long positions like Advanz Pharma and Virgin Media O2 detracted from performance, while shorts including Constellium and Lufthansa contributed positively. The strategy profitably exited Sabre following Constellation Software's strategic interest, capturing bonds' rally from mid-70s to high-80s.
Active credit trading strategy capitalizing on market inefficiencies and volatility, with tactical positioning adjustments based on geopolitical developments and credit market dislocations.
The manager expects continued volatility driven by geopolitical developments, with selective opportunities emerging from excessive market moves that may be subject to reversal if conditions improve.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| May 5 2026 | 2026 Q1 | ADVZ.L, BARC.L, BBVA, CBK.DE, CSTM, FR.PA, GS, LHA.DE, SABR, STAN.L, UBS, VMED.L | credit, energy, Europe, Geopolitical, rates, volatility | - | Credit fund navigated March 2026's Iran conflict-driven energy shock through tactical short positioning on oil-sensitive issuers and reduced financial AT1 exposure. While broad market stress weighed on long positions, strategic shorts in industrials and financials provided partial offset. Manager opportunistically harvested gains in Sabre following strategic interest, demonstrating active risk management during volatile geopolitical environment. |
| Dec 31 2024 | 2024 Q4 | AAPL, AMZN, GOOGL, META, MSFT, NVDA, TSLA | AT1, Bonds, credit, Europe, financials, Spreads | - | Amundi Chenavari Credit Fund posted 8% returns in 2024, driven by European credit spread tightening and successful AT1 positioning. The fund capitalized on banking sector M&A and primary market opportunities while managing French political risk. Outlook remains constructive on European credit supported by ECB easing and strong bank fundamentals. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
OilOil markets experienced dramatic volatility due to Iran conflict escalation, with Brent crude surging +7.26% in a single day and reaching $119/bbl before settling at $103/bbl. This energy shock became the defining macro event of the quarter, feeding into broader inflation expectations and market repricing. |
Brent WTI Energy shock Geopolitical risk Inflation |
Credit StressEuropean high yield credit markets experienced significant stress with the benchmark declining -2.35% and spreads widening over 50bp intramonth. This marked the largest monthly decline since 2022, driven by the Middle East conflict and energy price spikes affecting credit conditions broadly. |
High yield Credit spreads European credit Market stress Volatility | |
RatesInterest rate markets saw dramatic repricing with European markets moving more aggressively than the US. ECB expectations shifted from modest cuts to around 70bps of hikes by year-end, pushing 10-year bund yields back above 3% for the first time since 2011. US 10-year Treasury yields rose +38bps. |
ECB Fed Yield curve Monetary policy Inflation expectations | |
GoldGold suffered its largest monthly decline since 2008, falling -11.6% in March as rising real yields and a stronger US dollar weighed heavily on prices. Silver performed even worse with nearly -20% decline, reflecting broad precious metals weakness. |
Precious metals Real yields Dollar strength Safe haven Commodities | |
| 2024 Q4 |
CreditThe fund focuses on credit markets, analyzing trading and investment opportunities such as market inefficiencies where current prices do not reflect fair valuation. The strategy benefits from trends, price movements and price volatilities where current market valuation does not reflect embedded value. |
Credit Spreads Bonds Fixed Income Corporate Credit |
FinancialsSignificant exposure to European financial institutions including banks and insurance companies. The fund holds positions across the capital structure including AT1s, Tier 2, and senior debt. Performance driven by spread compression and positive earnings trends. |
Banks AT1 Tier 2 Insurance Capital Structure | |
European UnionPrimary geographic focus on European credit markets with holdings across multiple European countries including Germany, France, Italy, Spain, and the UK. The fund capitalizes on European M&A activity and regulatory developments. |
Europe European Union ECB European Credit |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
|---|---|
| SABR | During the month, Chenavari decided to take profits on its long position in Sabre (the travel technology company and GDS provider) on the back of rally prompted by Constellation Software building an equity stake of nearly 15% which signalled the possibility of a more strategic outcome drawing fresh investor attention. Bonds jumped from the mid-70s to the high-80s, at which point Chenavari decided to cut its exposure fully. |
| CSTM | In single names, the top performers included long Sabre, as well as the short positions in the portfolio including Constellium, Lufthansa and Valeo. |
| LHA.DE | In single names, the top performers included long Sabre, as well as the short positions in the portfolio including Constellium, Lufthansa and Valeo. |
| FR.PA | In single names, the top performers included long Sabre, as well as the short positions in the portfolio including Constellium, Lufthansa and Valeo. |
| ADVZ.L | On the other side, the broad market sell-off weighed in on the longs in the portfolio, with long Advanz Pharma, Virgin Media 02 and Essendi (formerly AccorInvest) the main single name drags. |
| VMED.L | On the other side, the broad market sell-off weighed in on the longs in the portfolio, with long Advanz Pharma, Virgin Media 02 and Essendi (formerly AccorInvest) the main single name drags. |
| BARC.L | In addition, Chenavari decided to increase its shorts on low-reset/low-dated AT1s, where Chenavari considered extension risk to be underpriced in the context of the evolving geopolitical environment, including names such as Barclays, Commerzbank, and Standard Chartered. |
| CBK.DE | In addition, Chenavari decided to increase its shorts on low-reset/low-dated AT1s, where Chenavari considered extension risk to be underpriced in the context of the evolving geopolitical environment, including names such as Barclays, Commerzbank, and Standard Chartered. |
| STAN.L | In addition, Chenavari decided to increase its shorts on low-reset/low-dated AT1s, where Chenavari considered extension risk to be underpriced in the context of the evolving geopolitical environment, including names such as Barclays, Commerzbank, and Standard Chartered. |
| UBS | On the other side, the book was negatively impacted by long positions, with UBS, BBVA, and Greek AT1s being the main detractors. |
| BBVA | On the other side, the book was negatively impacted by long positions, with UBS, BBVA, and Greek AT1s being the main detractors. |
| GS | Among the top performers in the strategy were shorts on Abanca, Barclays, Commerzbank and Goldman Sachs BDC. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||
