| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 5.6% | 0.36% | 1.09% |
The Easterly Income Opportunities Fund returned 0.36% net in Q2 2026, underperforming its benchmark by 31 basis points as rising Treasury yields offset carry income. The quarter saw easing geopolitical tensions, strong corporate earnings led by AI infrastructure investment, and a more hawkish Federal Reserve under Chairman Kevin Warsh. The fund continued improving liquidity and credit quality by reallocating from CMBS to higher-quality RMBS. All portfolio sectors generated positive returns except Corporate Structured Notes, which faced headwinds from yield curve flattening. The fund maintains a constructive outlook on structured credit, particularly Non-Agency RMBS, which remains one of the most resilient areas with favorable credit fundamentals. Within commercial real estate, office properties remain weak while multifamily and industrial properties demonstrate strength. Consumer finances have become increasingly bifurcated, reinforcing the importance of careful security selection. Corporate Structured Notes remain a high-conviction opportunity despite recent weakness. The fund expects AI-driven investment and differentiated credit conditions to create opportunities for active management in the second half of 2026.
Active management and disciplined security selection within structured credit markets can generate attractive risk-adjusted returns by identifying securities that offer compelling relative value, resilient collateral performance, and higher income potential compared to traditional corporate bonds, particularly as AI-driven investment and bifurcated consumer credit conditions create greater differentiation in credit quality across sectors.
The fund believes two themes will continue to shape fixed-income markets: AI-driven investment is likely to remain an important source of economic growth and corporate borrowing, and credit conditions are becoming increasingly differentiated across industries and consumer segments, creating a more favorable environment for active management. Although credit spreads have tightened across most sectors, the fund continues to see attractive opportunities in structured credit supported by strong underlying collateral, favorable supply-and-demand dynamics, and compelling relative value compared with many corporate bonds. The fund believes disciplined security selection will remain the primary driver of excess returns during the second half of 2026.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jul 31 2026 | 2026 Q2 | - | AI, CMBS, Consumer Credit, fixed income, Mortgage, rates, RMBS, Structured Credit | - | Easterly Income Opportunities Fund underperformed in Q2 2026 as rising rates offset carry, but maintains conviction in structured credit opportunities. The fund is reallocating from CMBS to higher-quality RMBS while consumer credit bifurcation creates selective opportunities. AI infrastructure investment drives economic growth while the Fed adopts a hawkish stance. Corporate Structured Notes offer compelling relative value despite yield curve headwinds. Active security selection remains critical as credit differentiation increases. |
| May 4 2026 | 2026 Q1 | - | ABS, CMBS, credit, fixed income, interest rates, RMBS, Structured Credit | - | Easterly's structured credit fund outperformed by 78bps in volatile Q1 as geopolitical events drove oil from $60 to $100+ and pressured markets. Fund maintains high liquidity while rotating from CMBS to higher-quality RMBS. Constructive outlook on non-agency RMBS with Basel III tailwinds, selective on CMBS given office stress, attractive value in seasoned ABS. |
| Feb 10 2026 | 2025 Q4 | JSVIX | CMBS, credit, fixed income, rates, RMBS, Spreads, Structured Notes | - | Easterly Income Opportunities Fund outperformed in Q4 2025 on curve steepening benefiting Corporate Structured Notes. The fund is increasing credit quality while maintaining constructive outlook on structured credit markets. Core thesis remains longer-term curve steepening with Fed rate cuts expected in 2026, creating attractive opportunities across RMBS, select CMBS, and high-multiple structured notes. |
| Nov 7 2025 | 2025 Q3 | JSVIX | ABS, CMBS, Credit Risk, Fed policy, fixed income, RMBS, Structured Credit, yield curve | - | Easterly's structured credit fund delivered steady returns in Q3 2025 despite market calm. Strong RMBS fundamentals and selective CMBS opportunities offset ABS sector stress from fraud concerns. Conservative positioning with 20% cash provides flexibility for future dislocations while maintaining competitive income through senior tranches across mortgage and asset-backed securities. |
| Jul 30 2025 | 2025 Q2 | ASML, HD, INPST.L, MELI, META, NIO, NU, SE, UBER | Autonomous Vehicles, E-Commerce, global, growth, semiconductors, technology |
UBER INPST.L SE ASML |
Exceptional Q2 performance of +20.4% driven by concentrated technology growth positions including Uber, MercadoLibre, and Sea Limited. Manager added to high-conviction names like Uber and InPost while maintaining cautious cash position above 4%. Focus remains on undervalued companies with strong execution and structural advantages, particularly in autonomous vehicles, e-commerce logistics, and semiconductors. |
| May 7 2025 | 2025 Q1 | ABBV, AMZN, ASML, INPST, MELI, META, MSFT, NIO, NU, SE, TSM, UBER, V | AI, E-Commerce, global, growth, Quality, semiconductors, technology |
ASML META SE NU |
Portfolio outperformed with +1.2% vs S&P -4.6% in Q1 by focusing on quality businesses like ASML, Meta, and Sea Limited. Manager opportunistically added to positions during corrections while maintaining disciplined approach. Strong performance from semiconductor and AI-exposed names offset broader market volatility, demonstrating resilience of concentrated quality strategy. |
| Mar 16 2025 | 2024 Q4 | - | - | - | |
| Oct 24 2024 | 2024 Q3 | - | - | - | |
| Aug 9 2024 | 2024 Q2 | - | - | - | |
| Feb 29 2024 | 2023 Q4 | ELUT, MDXH, XERS, ZETA | AI, Diagnostics, growth, healthcare, Pharmaceuticals, Rate Cuts, small caps |
MDXH XERS ZETA ELUT |
Small-cap growth manager outperformed benchmarks with +18-25% Q3 returns, focusing on healthcare overweight for offensive growth and defensive positioning. Key holdings include prostate diagnostics, specialty pharma, and marketing technology companies trading at discounted valuations. Expects Fed rate cuts to benefit small caps while remaining skeptical of AI infrastructure spending levels. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
AIAI-driven investment remains a powerful driver of economic growth and corporate profitability, with technology companies continuing to invest heavily in AI infrastructure including data centers, semiconductors, and related technologies. The fund views AI as likely to remain an important source of economic growth and corporate borrowing going forward. AI investment is reshaping economic growth and corporate investment patterns. |
Data Centers Semiconductors Infrastructure Spending Technology |
MortgageThe fund maintains a constructive outlook on both Agency and Non-Agency RMBS, with Non-Agency RMBS described as one of the most resilient areas within structured credit. Credit fundamentals remain favorable with mortgage performance exceeding expectations, loss severities below long-term averages, and slower prepayment speeds supporting valuations. The fund continues to find attractive opportunities in AAA non-qualified mortgage securities, HELOC transactions, and select higher-yielding seasoned bonds. |
RMBS Non-QM HELOC Agency MBS Credit | |
Commercial Real EstatePerformance within CMBS varies significantly across property types, with office properties remaining the weakest segment while industrial, multifamily, and smaller commercial properties demonstrate stronger performance. The fund focuses on sectors where collateral quality and structural protections remain attractive, including seasoned Small Balance Commercial transactions, multifamily-backed CRE CLOs, and carefully selected seasoned conduit securities. Persistent weakness in office properties has created greater differentiation across the market. |
CMBS Office Multifamily Industrial CRE CLOs | |
RatesThe Federal Reserve has adopted a more inflation-focused stance under Chairman Kevin Warsh, with updated projections pointing to higher inflation and interest rates than previously expected. Markets shifted from anticipating rate cuts to considering additional rate hikes. The fund's base case is one additional quarter-point rate hike before the current tightening cycle concludes, with expectations for the yield curve to steepen modestly over time as markets adjust to a more balanced outlook for growth and inflation. |
Federal Reserve Inflation Treasury Yield Curve | |
Credit StressConsumer finances have become increasingly bifurcated, with higher-income households benefiting from rising home values and equity markets while many lower-income consumers face pressure from elevated living costs, higher borrowing costs, and growing credit card balances. Credit performance increasingly reflects differences across consumer segments, with some lower-income consumers continuing to face pressure. This divergence reinforces the importance of careful security selection, particularly within consumer credit markets. |
Consumer Finance Credit Cards Consumer Bifurcation | |
| 2026 Q1 |
MortgageNon-agency RMBS issuance increased 50% year-over-year to $69 billion, driven by non-QM loans and home equity products. Strong investor demand early in quarter with heavy interest in new deals, though spreads widened modestly in March amid broader market volatility. Proposed Basel III revisions could increase bank demand and provide meaningful tailwind. |
RMBS Non-QM HELOC Basel III Securitization |
Commercial Real EstateCMBS issuance reached $47 billion with activity led by single-asset, single-borrower transactions. Office sector faces ongoing challenges with higher vacancy rates, increased delinquencies, and loss severities approaching 100% in some liquidations. Market reflects bifurcated environment with stability in stronger segments and stress in weaker areas. |
CMBS SASB Office Delinquencies Real Estate | |
RatesFed expected to deliver single 25bp rate cut in second half of 2026, treating current energy-driven inflation shock as transitory. Incoming Fed Chair Kevin Warsh emphasizes AI-driven productivity gains and supply-side expansion as structural disinflationary forces. Continued divergence expected across yield curve with front end benefiting from easing expectations. |
Fed Rate Cuts Inflation Yield Curve Monetary Policy | |
OilOil prices surged from around $60 to over $100 per barrel following major U.S. and Israeli military operation targeting Iran's leadership that disrupted key energy infrastructure and shipping routes. Spike in energy costs raised concerns about slower economic growth combined with higher inflation, pressuring both stocks and bonds in March. |
Energy Geopolitical Iran Supply Disruption Inflation | |
AIIncoming Fed Chair Kevin Warsh has consistently highlighted productivity gains from artificial intelligence as key structural disinflationary forces. AI-driven productivity gains are viewed as supporting economic growth and helping offset inflationary pressures from other sources. |
Productivity Disinflationary Technology Economic Growth | |
| 2025 Q4 |
AIManager believes market's assessment of AI risk differs from their own, with approximately 60% of relative underperformance attributed to positions where market deemed companies AI-losers. Portfolio companies like Gartner, CoStar, Clearwater Analytics, FactSet, MSCI, and Guidewire represent 42% of portfolio and declined 15% despite 10% revenue growth and 15% EPS growth. Manager remains optimistic about these companies' vast addressable markets and competitive advantages. |
Artificial Intelligence Disruption Valuation Software Analytics |
QualityFund exclusively invests in businesses with superior characteristics including high barriers to entry, sustainable competitive advantages, and durable secular tailwinds. Manager notes their practice of owning high-quality investments has been primary driver of long-term outperformance but was out of favor in 2025 as investors sold higher-quality investments to buy riskier stocks. MSCI Barra data shows Earnings Quality factor was in 100th percentile during nine-month period ended December 8, 2025. |
High Quality Competitive Advantages Earnings Quality Barriers to Entry | |
Small CapsFund's strategy of owning competitively advantaged small and medium-sized businesses remained out of favor for most of the quarter. Manager observed improvement in early December as investors showed renewed enthusiasm for high-quality stocks that exclusively populate the fund. Fund has meaningfully outperformed Russell 2000 Growth Index over long term with 11.62% annualized returns since inception versus 8.08% for benchmark. |
Small Cap Growth Russell 2000 Outperformance | |
FinancialsFinancials represent 62.1% of net assets and contributed -0.47% to quarterly returns. Notable holdings include Arch Capital Group (17.5% of assets), MSCI Inc. (17.3%), and Kinsale Capital Group (9.1%). Arch Capital contributed positively with 5.74% return on strong earnings and active capital management, while Kinsale declined on concerns about moderating growth amid cyclical slowdown for property and casualty insurance industry. |
Insurance Specialty Finance Capital Markets Asset Management | |
| 2025 Q3 |
MortgageNon-Agency RMBS remains one of the strongest areas within structured credit, benefiting from healthy housing market fundamentals, limited new supply, and attractive yields. New issuance reached $161 billion through Q3 2025, matching all of 2024. Credit performance remains stable with low loss severities at 26%. |
RMBS Housing Credit Yields Issuance |
Commercial Real EstateCMBS market shows contrasts between recovering sectors and struggling office properties. Refinancing success rate improved to 73% overall but office loans remain weak at 40%. Office loan delinquencies stand at 14% with loss severities at 60%. Private CMBS issuance reached $116 billion, up 41% from 2024. |
CMBS Office Refinancing Delinquencies Distress | |
Credit StressTricolor Holdings bankruptcy exposed large-scale fraud in subprime auto ABS market, with 40% of loans double-pledged. Subprime auto credit shows broader weakness with net losses at 9.33% and delinquencies at 6.43% near record highs. Growing divergence between prime and subprime consumer credit performance. |
Subprime Auto Fraud Delinquencies Losses | |
RatesFed delivered first rate cut of 2025 in September, trimming rates by 0.25% as risk-management move. Treasury yields declined with 10-year ending at 4.15%. Yield curve steepened by 13bps between 2s and 30s. Expectations for further Fed cuts increased with quantitative tightening nearing end. |
Fed Cuts Yields Curve Steepening | |
| 2025 Q2 |
E-commerceInPost is disrupting European e-commerce logistics with its locker network expansion. The UK expansion is showing strong execution with major partnerships like Debenhams Group, handling up to £1.8 billion in gross merchandise volume. |
Logistics Europe Lockers Delivery |
Autonomous VehiclesUber is positioned to benefit from autonomous vehicle industry fragmentation. Volkswagen's white-label robotaxi partnership demonstrates how manufacturers want to focus on vehicle production while leaving fleet management to Uber's distribution network. |
Robotaxis Fleet Management Distribution Partnerships | |
SemiconductorsASML is positioned for an AI-fueled rebound with surging demand for EUV and High-NA tools. S&P Global projects revenue growth from €32 billion in 2025 to €52 billion by 2030, potentially reaching EPS of over €50. |
EUV AI Lithography Equipment | |
| 2025 Q1 |
SemiconductorsASML maintains its monopoly in lithography equipment despite Chinese competition concerns. TSMC's $100 billion U.S. investment will drive demand for more ASML machines. Reports of Chinese EUV development remain unconfirmed with limited transparency about reliability. |
ASML Lithography EUV TSMC Manufacturing |
AIMeta is identified as one of the few companies already seeing tangible benefits from AI investments. The manager views Meta as a high-quality business benefiting from AI despite recent market correction. |
Meta Technology Investment Benefits | |
E-commerceSea Limited has performed exceptionally well and remains immune to U.S. tariff concerns. All three business segments are now profitable and self-sufficient while continuing to accelerate revenue growth. |
Sea Growth Profitability Segments | |
| 2023 Q4 |
HealthcareManager has shifted portfolios toward an overweight in healthcare, viewing it as both offensive and defensive. Offensive due to new products addressing large market opportunities, defensive due to nondiscretionary nature and lower economic sensitivity. Pharmaceuticals are specifically highlighted for novel therapies addressing large markets. |
Pharmaceuticals Diagnostics Medical Devices Biotechnology Specialty Pharma |
AIManager discusses the massive investments by tech giants in AI infrastructure and training models, comparing current partnerships to dot-com era vendor financing. While acknowledging AI will increase productivity long-term, expresses skepticism about current expectations and notes the absence of a killer app demonstrating high ROI. |
Cloud Data Centers Enterprise Software Semiconductors | |
Small CapsManager focuses on small and mid-cap stocks trading at 16x earnings, considerably less than large-cap valuations. Believes small companies historically outperform during rate cutting cycles and sees opportunities in active stock selection versus passive indexing in this environment. |
Value Growth Quality |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jul 2, 2025 | Fund Letters | Easterly - Income Opportunities Fund | ASML | ASML Holding NV | Information Technology | Semiconductors & Semiconductor Equipment | Bull | NASDAQ | AI, Cyclical, Euv, High NA, Lithography, Monopoly, Netherlands, semiconductors, Value | Login |
| Jul 2, 2025 | Fund Letters | Easterly - Income Opportunities Fund | SE | Sea Limited | Communication Services | Interactive Media & Services | Bull | NYSE | Digital Entertainment, e-commerce, Fintech, Gaming, growth, margin expansion, revenue acceleration, Southeast Asia | Login |
| Jul 2, 2025 | Fund Letters | Easterly - Income Opportunities Fund | INPST.L | InPost SA | Industrials | Air Freight & Logistics | Bull | LSE | Disruptor, E-commerce logistics, European expansion, Last-mile Delivery, Parcel Lockers, Reinvestment runway, UK market, Value | Login |
| Jul 2, 2025 | Fund Letters | Easterly - Income Opportunities Fund | UBER | Uber Technologies Inc | Consumer Discretionary | Internet & Direct Marketing Retail | Bull | NYSE | autonomous vehicles, distribution network, growth, Mobility Services, platform, Ride Sharing, robotaxi, technology | Login |
| Apr 1, 2025 | Fund Letters | Easterly - Income Opportunities Fund | SE | Sea Limited | Communication Services | Interactive Media & Services | Bull | NYSE | Digital Financial Services, Diversified, e-commerce, Gaming, profitability, Southeast Asia, Tariff Immunity | Login |
| Apr 1, 2025 | Fund Letters | Easterly - Income Opportunities Fund | NU | Nu Holdings Ltd. | Financials | Consumer Finance | Bull | NYSE | Brazil, Credit risk, Currency, digital banking, Emerging markets, Fintech, valuation | Login |
| Apr 1, 2025 | Fund Letters | Easterly - Income Opportunities Fund | META | Meta Platforms Inc. | Communication Services | Interactive Media & Services | Bull | NASDAQ | Artificial Intelligence, High quality, market correction, social media, technology, valuation | Login |
| Apr 1, 2025 | Fund Letters | Easterly - Income Opportunities Fund | ASML | ASML Holding N.V. | Information Technology | Semiconductors & Semiconductor Equipment | Bull | NASDAQ | China, Euv, geopolitical, Lithography, Manufacturing Equipment, Monopoly, semiconductors, technology, TSMC | Login |
| Sep 30, 2025 | Fund Letters | Easterly - Income Opportunities Fund | ZETA | Zeta Global Holdings Corp. | Communication Services | Interactive Media & Services | Bull | NYSE | advertising technology, Artificial Intelligence, digital marketing, growth, Martech, Software, Value | Login |
| Sep 30, 2025 | Fund Letters | Easterly - Income Opportunities Fund | ELUT | Elutia Inc. | Health Care | Health Care Equipment & Supplies | Bear | NASDAQ | Biotech, Cardiac Devices, healthcare, Management Risk, Medical devices, value destruction | Login |
| Sep 30, 2025 | Fund Letters | Easterly - Income Opportunities Fund | MDXH | MDxHealth | Health Care | Health Care Equipment & Supplies | Bull | NASDAQ | Biotech, diagnostics, growth, healthcare, Medical devices, Prostate Cancer, Value | Login |
| Sep 30, 2025 | Fund Letters | Easterly - Income Opportunities Fund | XERS | Xeris Pharmaceuticals Inc. | Health Care | Pharmaceuticals | Bull | NASDAQ | Biotech, Cushing's Syndrome, growth, healthcare, pharmaceuticals, rare disease, Specialty pharma | Login |
| TICKER | COMMENTARY |
|---|---|
| No ticker commentary found. | |
| 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 | |||
