The curated database of hedge funds that publish investor letters. Research by geography, strategy, and schools of thought.
| # | Fund | Strategy | Style | Geography | AUM | Latest Letter |
|---|---|---|---|---|---|---|
The Brandes Core Plus Fixed Income Fund returned 0.94% in Q2 2026, outperforming its benchmark as the Bloomberg U.S. Aggregate Bond Index rose 0.67%. The quarter saw Federal Reserve policy expectations shift from anticipated rate cuts to potential rate increases by year-end, driven by consistently stronger-than-expected economic data. Security selection drove outperformance, particularly Sabre Global, which benefited as macro headwinds from government shutdowns and energy price volatility faded while the company executed on technology improvements and market share gains. The manager views the current fixed income market as complacent, with corporate bond yield spreads at 30-year tights despite record issuance exceeding $1 trillion by mid-May. While absolute yields are attractive, credit risk compensation is historically low. The Fund maintains a defensive posture with duration 6% shorter than benchmark, favors shorter-maturity corporates with strong asset coverage, holds a meaningful Treasury allocation for opportunistic redeployment, and remains underweight agency mortgage-backed securities. The manager emphasizes patience and rigorous security selection as essential in this environment.
The Brandes Core Plus Fixed Income Fund maintains a defensive posture in an environment where credit spreads are at 30-year tights despite record corporate bond issuance, favoring shorter-duration corporate bonds with strong asset coverage and a meaningful Treasury allocation for opportunistic redeployment when volatility creates value.
The manager believes fixed income yields are attractive in absolute terms, but corporate and mortgage-backed bonds are not cheap on a relative basis given historically tight credit spreads. The outlook emphasizes patience and security selection as critical in the current environment. The manager expects to continue searching for value in a measured manner while maintaining a defensive portfolio tilt, ready to redeploy Treasury holdings if market volatility creates mispricing opportunities.
As of Aug 29, 2026
The Fund is managed by a Fixed Income Investment Committee comprising Timothy M. Doyle, David J. Gilson, and Charles S. Gramling, each with extensive experience and CFA credentials in portfolio management and analysis. Charles S. Gramling is Fixed Income Director for the Brandes Fixed Income Group, leading the group in all areas, including strategy development, portfolio management and trading. Fixed Income Portfolio Manager Timothy M. Doyle is responsible for strategy development, portfolio management and trading and is a member of the Fixed Income Investment Committee. Senior Fixed Income Analyst David J. Gilson handles corporate bond research, strategy development, portfolio management and trading, having started with the fund in 2007 with over 14 years tenure. The management team has overseen the Fund since 2024 following a reorganization on August 5, 2024. The Fund assumes the predecessor's financial and performance history.
The Brandes Core Plus Fixed Income Fund seeks to maximize long-term total return, consisting of both current income and capital appreciation. The strategy primarily invests in U.S. Treasury and high quality agency and corporate debt. The portfolio may invest up to 25% of its assets in each of non-U.S. dollar-denominated and non-investment grade debt instruments. Brandes has been navigating the fixed-income investment landscape for over 20 years. The Core Plus Fund invests at least 80% of its net assets in U.S. dollar-denominated debt securities, including investment-grade and non-investment grade securities. The Adviser uses value investing principles analyzing creditworthiness via free cash flow, debt-to-equity, and EBITDA metrics. The Fund typically maintains portfolio duration within 20% of its benchmark and employs a bottom-up value-focused investment process with proprietary research and internal rating disciplines to evaluate credit quality independently. A minimum of 75% investment grade at purchase is maintained. The Fund's portfolio turnover rate during October 1, 2024 through March 31, 2025 was 5.39%, reflecting a longer-term holding approach averaging two to five years.
Lead Portfolio Manager
Moderate Conviction Bullish
Market Conviction
The Fund demonstrates moderate conviction through specific named positions with detailed thesis explanations, particularly the extensive Sabre Global case study. The manager articulates clear investment principles (bottom-up fundamental analysis, long-term focus, willingness to look through short-term noise) and provides specific positioning details (duration 6% shorter than benchmark, underweight MBS, meaningful Treasury allocation). However, the portfolio holds diversified exposure across multiple sectors and issuers as shown in the top holdings table, and the manager acknowledges uncertainty with hedged language around waiting for opportunities. The conviction is evident in specific holdings but tempered by broad diversification and defensive positioning.
Growth Outlook
Market outlook remains moderate conviction: Brandes International Equity Fund gained 2.59% in Q1 2026, outperforming on energy strength and AI-driven semiconductor demand while facing headwinds from AI disruption concerns in...
Risk Appetite
Risk appetite posture is low conviction: Brandes International Equity Fund gained 2.59% in Q1 2026, outperforming on energy strength and AI-driven semiconductor demand while facing headwinds from AI disruption concerns in...
Capital Deployment
Portfolio activity was explicitly described as modest during the quarter. The Fund added two new positions (Baxter International and American National Group) but experienced one maturity and four calls, suggesting net neutral to slight reduction in corporate exposure. The meaningful Treasury allocation is being held for potential future deployment rather than being deployed currently. The manager emphasizes patience and waiting for opportunities, indicating capital is not being aggressively put to work. No cash level changes are disclosed, but the overall tone and activity level suggest slight de-risking or at minimum a pause in deployment.
Forward Guidance
Forward guidance signal: Brandes International Equity Fund gained 2.59% in Q1 2026, outperforming on energy strength and AI-driven semiconductor demand while facing headwinds from AI disruption concerns in...
Language Signal
The letter contains more cautious and risk-focused language than bullish language. Terms like complacency, priced for perfection, market uncertainty, potential for widening spreads, defensive posture, and patience dominate the commentary. While the manager does identify specific opportunities like Sabre Global and notes that absolute yields are attractive, the overall directional language balance tilts toward caution and risk awareness. The manager uses phrases like successfully navigating requires patience and places a premium on security selection, suggesting a challenging environment.
Perceived Risk
Perceived risk level is evaluated as moderate conviction. Brandes International Equity Fund gained 2.59% in Q1 2026, outperforming on energy strength and AI-driven semiconductor demand while facing headwinds from AI disruption concerns in...
Opportunity Density
The manager characterizes the opportunity set as requiring patience and selectivity, stating that successfully navigating the current environment places a premium on security selection. The letter emphasizes that corporate and mortgage-backed bonds are not cheap despite attractive absolute yields, and describes the market as priced for perfection. Portfolio activity was modest with only two new positions added. The manager is holding a meaningful Treasury allocation waiting for better opportunities, explicitly stating they will look to redeploy if volatility creates mispricing. This language indicates opportunities are sparse and the manager is struggling to find compelling value at current spread levels.
Time Horizon
The Fund demonstrates a multi-year investment horizon through its emphasis on long-term focus as a core investment principle and the detailed Sabre Global case study, where the manager initiated positions in the second half of 2025 and held through macro headwinds to benefit in Q2 2026. The letter highlights willingness to look through short-term noise and focus on fundamental credit analysis rather than near-term trading. However, the Fund is a fixed income vehicle with quarterly reporting and some catalyst dependency (Fed policy, spread movements), preventing a score in the highest range. The time horizon is clearly longer than typical tactical fixed income but not permanent capital.
Top Conviction Themes
Key Catalysts
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