| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 4.09% | -2.89% | -2.89% |
The Fairtree Global Flexible Income Plus Fund delivered -2.89% in Q1 2026, demonstrating resilience during March's sharp risk-off environment when geopolitical shocks repriced global assets. While the SX5E fell 9.14% and DJIA dropped 5.20% in March, the fund's defensive structure limited drawdowns through deep diversification across 46 instruments with 365 underlying obligors. The strategy's low beta of 0.42 to European equities since 2007 provided structural insulation from equity market volatility. Recent market repricing created opportunities to enhance yields, with the fund actively recycling capital into higher spreads. The fund's yield spread increased to 4.38% over 3-month EURIBOR, resulting in a pro-forma total yield of 4.45%. As floating-rate instruments reset at elevated levels, the fund is positioned to deliver enhanced income streams. The manager views market volatility as creating long-term yield advantages, expecting the fund to continue serving as a defensive cornerstone with outsized risk-adjusted returns.
The fund provides capital stability and income generation through diversified credit risk premium harvesting, maintaining defensive characteristics while capturing enhanced yields from market volatility.
The manager expects the fund to continue serving as a defensive cornerstone for investors, turning market volatility into long-term yield advantage. As floating-rate instruments reset at higher levels, the fund is positioned to deliver enhanced and stable income streams with outsized returns per unit of risk compared to other risk assets.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| May 6 2026 | 2026 Q1 | - | credit, Defensive, diversification, Europe, fixed income, global | - | Fairtree's income fund demonstrated defensive resilience in Q1 2026's volatile markets, limiting losses to -2.89% while equity indices fell significantly more. Deep diversification across 365 credit obligors provided stability during March's risk-off environment. Recent spread widening created opportunities to enhance yields to 4.45%, positioning the fund for improved income generation going forward. |
| Feb 10 2026 | 2025 Q4 | VOD.L | credit, Europe, fixed income, rates, risk management, Structured Notes | - | Fairtree's global credit fund underperformed in Q4 due to fees and a default but delivered solid annual returns. The managers increased risk exposure through leveraged European credit structured notes, betting the global bull market continues. With EU inflation at target and credit spreads attractive, they're positioning for extended risk-on conditions while managing fee drag. |
| Nov 3 2025 | 2025 Q3 | GS | Central Banks, credit, European credit, fixed income, interest rates, risk management | - | Fairtree's credit fund delivered 2.63% in Q3, outperforming benchmark by 29bps as European credit markets continued their bull run. Managers increased risk exposure while maintaining defensive liquidity buffers. Fed rate cuts and stable credit fundamentals support the ongoing rally, though narrowing spreads present yield harvesting challenges ahead. |
| Aug 11 2025 | 2025 Q2 | - | Central Banks, credit, European, fixed income, inflation, risk management | - | Crawford's credit-focused fund delivered 2.62% in Q2, capitalizing on European high-yield credit outperformance. The manager increased risk positioning for continued credit bull run while maintaining defensive liquidity. Central bank divergence and narrowing credit spreads drive performance, with ECB cutting more aggressively than Fed. Expects one more ECB cut before cycle completion. |
| May 22 2025 | 2025 Q1 | - | Central Banks, credit, Europe, fixed income, inflation, rates, risk management | - | European credit offers superior risk-adjusted returns versus equities, supported by 18 years of data showing 2x levered iTraxx outperformance. Fund increased risk positioning as spreads widened to 400 bps over EURIBOR, targeting 5.3% net returns. Defensive stance with ample liquidity positions fund to capitalize on market weakness amid continued global political instability. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
Credit StressThe fund navigated March's global risk-off environment and credit spread widening through deep diversification across 365 underlying obligors. Credit spreads widened significantly during the quarter, but the fund's broad exposure limited impact from idiosyncratic credit events. |
Credit Spreads Diversification Risk Default |
ResilienceThe fund demonstrated structural resilience during Q1 2026's market volatility, limiting drawdowns to -2.89% while equity markets fell significantly more. The strategy's defensive characteristics and low beta to equity markets provided capital stability during turbulent periods. |
Defensive Stability Volatility Protection Beta | |
| 2025 Q4 |
CreditEuropean credit markets delivered positive returns with iTraxx Crossover producing 2.16% and the 2x levered index generating 3.82%. The fund experienced one meaningful default from Ardagh Packaging Finance PLC with expected recovery around 40%. Credit spreads remain attractive with the fund's weighted average spread at 335 bps. |
Credit iTraxx Spreads Defaults Recovery |
InflationInflation trends have diverged across developed markets with the US showing stability, Europe hitting the ECB's 2% target at 1.9%, while UK inflation remains elevated at 3.4% well above the Bank of England's target. The disinflationary trend has slowed and even reversed slightly in some regions. |
Inflation Central Banks Monetary Policy Interest Rates | |
RatesCentral banks have largely completed their rate cutting cycles with the ECB potentially offering one last cut in 2026. The Bank of England faces a challenging position with elevated inflation potentially forcing rate hikes despite economic weakness. Bond yields showed mixed performance across regions. |
Interest Rates Central Banks Bond Yields Monetary Policy | |
| 2025 Q3 |
CreditEuropean credit continues to outperform with iTraxx Crossover delivering strong risk-adjusted returns. The fund increased exposure to iTraxx indices during the quarter, positioning for continuation of the credit bull run that started in Q3 2022. |
Credit Spreads iTraxx European Credit Investment Grade High Yield |
Risk AppetiteMarkets demonstrated strong risk appetite with NASDAQ delivering 11.43% in Q3, marking the 4th best rolling 6-month performance since 2007. The manager notes that avoiding risk carries its own risk, as 74% of 6-month periods produced positive returns. |
Risk Premium Volatility Market Rally Risk Assets | |
RatesCentral banks continue cutting cycles with Fed making first cuts since 2020. European Central Bank has essentially completed its cutting cycle while Bank of England faces constraints with UK CPI at 3.8%. Manager expects Fed to cut further to 3.50-3.75% range. |
Interest Rates Central Banks Fed Cuts Monetary Policy | |
| 2025 Q2 |
CreditThe fund focuses on European credit markets, particularly the iTraxx Crossover index which delivered 3.58% in Q2. The manager emphasizes that credit offers better risk-adjusted returns than equities, with the 2x levered index producing 6.53% for the quarter. Credit spreads have narrowed significantly, with iTraxx 5-year Crossover spreads ending at 282 bps, down 47 bps from Q1. |
Credit Spreads iTraxx Investment Grade High Yield Duration |
RatesCentral bank policy divergence is a key theme, with the ECB cutting 235 bps since May 2024 while the Fed has only cut 100 bps. The manager expects one more ECB rate cut but believes the cutting cycle may be complete. Current EURIBOR at 1.94% provides a total yield expectation of around 5.60% for the fund. |
Central Banks ECB Fed EURIBOR Monetary Policy | |
InflationInflation trends are closely monitored across developed markets, with the manager noting that disinflationary trends have slowed and even reversed slightly in the US. European inflation has hit the 2% target, but the manager contends inflation is a global phenomenon driven by input prices rather than localized factors, requiring continued US disinflation for European gains to persist. |
Disinflation CPI Price Stability Global Inflation Input Costs | |
Risk AppetiteThe fund has increased risk during the quarter and is positioned for a continuation of the credit bull run. The manager sees no evidence of impending risk-off sentiment but expects normal volatility levels. The fund remains defensively invested with ample liquidity to capitalize on market retracements. |
Risk Management Volatility Liquidity Defensive Positioning Bull Market | |
| 2025 Q1 |
CreditEuropean credit markets produced marginal positive returns with iTraxx Crossover delivering 0.37% total return. Credit has historically outperformed equities from a risk-adjusted perspective, with the 2x levered iTraxx index offering superior risk-adjusted returns compared to equity equivalents. |
Credit Spreads iTraxx Investment Grade High Yield Risk Premium |
RatesCentral banks continue cutting cycles with ECB most aggressive at 185 bps cuts, while Fed cut 100 bps. Market discounting 100-125 bps of Fed cuts by Q1 2026, though manager believes current cutting excesses may be taken out of market prices as tariff war premium unwinds. |
Central Banks Fed Cuts ECB EURIBOR Yield Curve | |
InflationGlobal inflation has converged and is well off highs from Q4 2022, with disinflationary trend slowing down resulting in more cautious central bank responses. Convergence of global headline inflation numbers suggests global trends dominate over country-specific factors. |
Disinflation CPI Global Convergence Price Stability |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| 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 | |||
