| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 4.7% | 1.1% | - |
The Fairtree Global Flexible Income Plus Fund delivered 6.65% annual returns in 2025 but underperformed its iTraxx XOver benchmark by 1.08% in Q4 due to fees and a credit default. The Fund focuses on European credit markets, particularly leveraged iTraxx instruments which the managers view as offering attractive risk-adjusted returns in a low-default environment. During Q4, the Fund increased risk by deploying 3.25% into structured notes referencing leveraged credit indices from Citibank and Morgan Stanley. The global bull market that began in Q2 2025 continued strongly into Q4, with developed market equities rallying across regions. Central bank policy diverged, with the ECB completing its cutting cycle as EU inflation hit the 2% target, while the UK faces stagflation challenges. The managers emphasize risk-adjusted return analysis and acknowledge the bull market may extend further, leading them to revisit their trading strategies to capture opportunities while managing the elevated fee burden.
The Fund provides diversified global credit exposure targeting outperformance of the iTraxx XOver Index through strategic allocation to leveraged European credit instruments and structured notes.
The managers acknowledge the global risk bull run may extend for quite some time and have revisited their trading programme accordingly. They will continue trading structured notes to exceed index performance on a post-fees basis.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Feb 10 2026 | 2025 Q4 | VOD.L | credit, Europe, fixed income, rates, risk management, Structured Notes | - | The Fund focuses on European credit markets, particularly the iTraxx Crossover suite of indices which produced positive returns in Q4. The managers view leveraged European credit as offering good risk-adjusted opportunities in the absence of meaningful defaults. The Fund increased risk during Q4 by adding structured notes referencing leveraged iTraxx indices. The commentary extensively discusses risk-adjusted returns using standard deviation and return coefficients. The managers analyze risk across different asset classes and emphasize the importance of risk measurement in portfolio construction. They acknowledge that excess returns should compensate for risk taken. Central bank policy and interest rate movements are analyzed across major economies. The ECB has essentially completed its cutting cycle, while the Bank of England faces challenges with elevated inflation. The Fund's performance is tied to EURIBOR spreads and rate movements affect the underlying credit instruments. |
| Nov 3 2025 | 2025 Q3 | - | Bonds, credit, iTraxx, Spreads, Yield | - | Fairtree Global Flexible Income Plus Fund capitalized on the ongoing credit bull market, returning 2.63% in Q3 and outperforming its benchmark. The fund increased exposure to iTraxx indices and high-quality bank credit while maintaining a defensive liquidity stance. Managers remain constructive on credit spreads, seeking selective opportunities amid stable monetary conditions. |
| Aug 11 2025 | 2025 Q2 | - | credit, income, risk premium, Spreads, Yield | - | The letter focuses on credit markets as an attractive risk-adjusted alternative to equities amid elevated macro uncertainty and subdued default expectations. Management emphasizes that structured credit indices, particularly European crossover credit, continue to offer persistent excess returns due to investor aversion to tail risk and demand for income. The strategy highlights disciplined exposure to credit risk as a way to capture yield while managing volatility in a late-cycle environment. |
| May 22 2025 | 2025 Q1 | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
CreditFund focuses on elevated carry in high yield credit markets with spreads remaining range bound below 300 basis points. Manager believes high yield credit is fundamentally strong but valuations are tight, particularly in higher quality BBs. Strategy emphasizes sourcing positions with higher income levels given limited price appreciation opportunities. |
High Yield Credit Spreads Carry Investment Grade |
RatesFederal Reserve resumed rate-cutting cycle with first cut since December 2024, signaling resumption of easing. Expected three cuts of 25bps between now and first quarter 2026 as Fed responds to signs of weakness in US labor market. |
Fed Monetary Policy Labor Market Easing Liquidity | |
Risk ManagementPrimary goal is to avoid blowing up and survive through bad times. Uses rules like not buying whole positions at once, demanding 50% upside, watching leverage, and knowing when to double down. Maintains defensive portfolio positioning. |
Defensive Blow-up Discipline Concentration Cash | |
| 2025 Q3 |
CreditFund focuses on elevated carry in high yield credit markets with spreads remaining range bound below 300 basis points. Manager believes high yield credit is fundamentally strong but valuations are tight, particularly in higher quality BBs. Strategy emphasizes sourcing positions with higher income levels given limited price appreciation opportunities. |
High Yield Credit Spreads Carry Investment Grade |
Fixed Income |
||
| 2025 Q2 |
CreditFund focuses on elevated carry in high yield credit markets with spreads remaining range bound below 300 basis points. Manager believes high yield credit is fundamentally strong but valuations are tight, particularly in higher quality BBs. Strategy emphasizes sourcing positions with higher income levels given limited price appreciation opportunities. |
High Yield Credit Spreads Carry Investment Grade |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
|---|---|
| VOD.L | Vodacom called their perpetual preference shares, which amounted to approximately 1.8% |
| 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 | |||
