| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | Since Inception |
|---|---|---|---|---|---|---|
| 20.2% | -5.3% | 15% | 60% | 80.3% | 102.2% | 68.5% |
PGIM Core Bond Fund navigated Q1 2026 amid significant market disruption from the Iran conflict and closure of the Strait of Hormuz, which drove energy prices higher and forced a rapid repricing of central bank expectations from easing to hiking. The fund outperformed its Bloomberg U.S. Aggregate benchmark through overweights to CLO AAA, non-agency CMBS, and securitized sectors, while security selection in investment-grade corporates contributed positively. The manager revised their U.S. economic scenario from 'Muddle Through' to 'Overheating,' expecting inflation to peak at 3.5% before moderating. Portfolio positioning reflects heightened caution with focus on carry rather than spread compression, expressing duration views through options markets given the wide spectrum of outcomes. Credit fundamentals show early signs of stress with elevated AI-related capital expenditures and increased M&A activity, though the manager expects broad stability. The fund maintains overweights to energy, banks, and utilities while avoiding sectors sensitive to inflation pressures. With yields at highest levels since pre-financial crisis, the manager sees opportunity for solid long-term returns despite near-term volatility.
PGIM Core Bond Fund maintains a cautious risk stance focused on carry generation rather than spread compression, positioning defensively across credit markets while the Iran conflict creates elevated volatility and inflation pressures that force central banks toward tightening bias.
The manager expects yields to find support at upper bounds of recent ranges with the majority of rate shock behind them. Credit fundamentals are expected to remain fairly stable despite elevated risks, with carry being the primary driver of performance. The slow-go bull market with respectable yields translating into solid returns over the long term looks set to continue.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| May 4 | 2026 Q1 | - | credit, duration, energy, fixed income, inflation, Iran, Spreads | - | - |
| Jan 21 | 2025 Q4 | TAIBX, TPCAX, TPCCX, TPCQX | credit, duration, Fed policy, fixed income, Spreads, yield curve | - | Credit products posted positive returns with tight investment grade spreads and stable high yield spreads. The fund maintains overweights to securitized credit including CLOs and… |
| Nov 5 | 2025 Q3 | - | Clos, CMBS, credit, duration, Fed, fixed income, rates, Spreads | - | The Fed cut rates by 25 bps in September and is expected to continue a gradual cutting cycle toward neutral around 3.0%. The manager expects… |
| Jul 22 | 2025 Q2 | - | Clos, CMBS, credit, duration, emerging markets, fixed income, monetary policy, Spreads | - | The fund expects fundamental trends to vary by industry and remains watchful of more cyclical and consumer discretionary sectors. At this stage in the credit… |
| Mar 31 | 2025 Q1 | - | Commercial real estate, credit, Fed policy, fixed income, rates, tariffs, Trade Policy | - | Trump administration's reciprocal tariffs significantly increase likelihood of tail outcomes globally. Potential developments include about half of announced tariffs rolling back on negotiations, leaving effective… |
| Sep 30 | 2024 Q3 | - | credit, duration, Fed policy, fixed income, investment grade, Spreads, yield curve | - | Fed cut rates by 50 basis points in September and is expected to reach neutral by early 2026. The yield curve is positioned to continue… |
| Jul 31 | 2024 Q2 | - | Clos, CMBS, credit, duration, fixed income, MBS, rates, Spreads | - | At this stage in the credit cycle, more frequent event risks, consumers' increasing focus on essentials, and moderating credit metrics point allocations towards high-quality securities.… |
| QUARTER | THEMES | TAGS |
|---|---|---|
| Q4 2025 |
QualityYCG focuses on high-quality, recession-resistant toll takers that have historically outperformed over the long term but are currently experiencing underperformance in speculative markets. |
Quality Toll Takers Recession Resistant Undervalued Long Term |
AerospaceTransDigm represents a portfolio of aerospace parts with mission-critical, proprietary characteristics and little competition. |
Aerospace Parts Aftermarket Pricing Power Regulatory | |
Industrial GasesLinde operates in industrial gases with economies of scale advantages and take-or-pay contracts providing guaranteed income streams. |
Industrial Gases Economies of Scale Take or Pay Mission Critical Local Monopolies | |
Social MediaMeta demonstrates resilience of large networks through ability to adapt to competitive threats and regulatory changes. |
Social Media Network Effects AI Investment User Engagement Advertising | |
| Q3 2025 |
QualityYCG focuses on high-quality, recession-resistant toll takers that have historically outperformed over the long term but are currently experiencing underperformance in speculative markets. |
Quality Toll Takers Recession Resistant Undervalued Long Term |
AerospaceTransDigm represents a portfolio of aerospace parts with mission-critical, proprietary characteristics and little competition. |
Aerospace Parts Aftermarket Pricing Power Regulatory | |
Industrial GasesLinde operates in industrial gases with economies of scale advantages and take-or-pay contracts providing guaranteed income streams. |
Industrial Gases Economies of Scale Take or Pay Mission Critical Local Monopolies | |
Social MediaMeta demonstrates resilience of large networks through ability to adapt to competitive threats and regulatory changes. |
Social Media Network Effects AI Investment User Engagement Advertising | |
| Q2 2025 |
QualityYCG focuses on high-quality, recession-resistant toll takers that have historically outperformed over the long term but are currently experiencing underperformance in speculative markets. |
Quality Toll Takers Recession Resistant Undervalued Long Term |
AerospaceTransDigm represents a portfolio of aerospace parts with mission-critical, proprietary characteristics and little competition. |
Aerospace Parts Aftermarket Pricing Power Regulatory | |
Industrial GasesLinde operates in industrial gases with economies of scale advantages and take-or-pay contracts providing guaranteed income streams. |
Industrial Gases Economies of Scale Take or Pay Mission Critical Local Monopolies | |
Social MediaMeta demonstrates resilience of large networks through ability to adapt to competitive threats and regulatory changes. |
Social Media Network Effects AI Investment User Engagement Advertising | |
| Q1 2025 |
QualityYCG focuses on high-quality, recession-resistant toll takers that have historically outperformed over the long term but are currently experiencing underperformance in speculative markets. |
Quality Toll Takers Recession Resistant Undervalued Long Term |
AerospaceTransDigm represents a portfolio of aerospace parts with mission-critical, proprietary characteristics and little competition. |
Aerospace Parts Aftermarket Pricing Power Regulatory | |
Industrial GasesLinde operates in industrial gases with economies of scale advantages and take-or-pay contracts providing guaranteed income streams. |
Industrial Gases Economies of Scale Take or Pay Mission Critical Local Monopolies | |
Social MediaMeta demonstrates resilience of large networks through ability to adapt to competitive threats and regulatory changes. |
Social Media Network Effects AI Investment User Engagement Advertising |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| UNH | - | $23.9M | 46K | 35.3% | 0.83% |
| EAF | - | $13.7M | 1M | - | 0.19% |
| CRMT | - | $5.5M | 122K | 1,109.1% | 0.05% |
| FICO | - | $3.8M | 3K | - | 0.05% |
| MMC | - | $3.5M | 17K | - | 0.05% |
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| ATURA | - | $37.5M | 1M | -6.5% | 9.21% | Decreased |
| - | - | $31.2M | 461K | -22.6% | 1.98% | Decreased |
| CORP | - | $28.9M | 77K | -7.0% | 7.34% | Decreased |
| SWAB | - | $28.9M | 371K | -8.1% | 5.52% | Decreased |
| - | - | $22.5M | 428K | -6.9% | 4.58% | Decreased |
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| Communication Services | 16.0% | 17.6% | +1.6% |
| Consumer Staples | 20.8% | 19.4% | -1.4% |
| Information Technology | 11.7% | 10.8% | -0.9% |
| Health Care | 5.4% | 6.0% | +0.6% |
| Utilities | 1.7% | 2.1% | +0.4% |
| Industrials | 11.5% | 11.8% | +0.3% |
| Financials | 10.8% | 10.6% | -0.2% |
| TICKER | COMMENTARY |
|---|---|
| CPRT | We recently trimmed some of our mega-cap tech holdings and other outperformers and used the proceeds to buy more of our underperforming holdings such as Copart, Inc. |
| VRSK | We trimmed mega-cap tech holdings and redeployed capital into underperforming positions such as Verisk Analytics and initiated new positions in TransDigm and Linde. This reflects our strategy of buying cyclically underperforming assets. |
| TDG | TransDigm is a leading aerospace supplier with highly engineered components across commercial and military aircraft. Its portfolio creates near-monopolies with strong pricing power. |
| LIN | Linde is the largest industrial gas company globally, benefiting from scale advantages and long-term take-or-pay agreements that provide predictable recurring income streams. |
| Symbol | Company | Filed By | Filing Date | Filing |
|---|---|---|---|---|
| IMUX | Immuno Bio. Inc | Praetorian Capital | Apr 10, 2025 | SC 13G/A |
| LEE | LEE ENTERPRISES, Inc | Praetorian Capital | Mar 05, 2025 | SC 13D/A |
| AMRK | A-Mark Precious Metals, Inc | Praetorian Capital | Feb 14, 2025 | SC 13G/A |
| IMUX | Immuno Bio. Inc | Praetorian Capital | Jan 15, 2025 | SC 13G |
| STIM | lee enterprises, incorporated | Praetorian Capital | Nov 07, 2024 | SC 13D/A |
| HKHC | Horizon Kinetics Holding Corporation | Praetorian Capital | Oct 15, 2024 | SC 13G |
| GENK | GEN Restaurant Group, Inc | Praetorian Capital | Aug 05, 2024 | SC 13G/A |
| SLGD | Scotts Liquid Gold-Inc. | Praetorian Capital | May 13, 2024 | SC 13G |
| AMRK | A-Mark Precious Metals, Inc | Praetorian Capital | Apr 05, 2024 | SC 13G |
| GENK | GEN Restaurant Group, Inc | Praetorian Capital | Mar 15, 2024 | SC 13G |
| LEE | 1 lee enterprises, incorporated | Praetorian Capital | Jan 17, 2023 | SC 13D/A |
