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 |
|---|---|---|---|---|---|---|
As of Aug 6, 2026
Franklin High Income Fund posted a 2.19% return in Q2 2026, benefiting from a ratings-quality tilt that favored Ca and B rated bonds and strategic industry allocations including overweights to finance and underweights to media cable and supermarkets. The US high-yield market delivered solid returns throughout the quarter as investors remained positive on active capital markets and progress toward resolving the Middle East conflict, despite hawkish Federal Reserve commentary. The US high-yield default rate increased modestly to 2.67% but remains below long-term averages, supported by wide open capital markets that generated $2.3 billion in fund inflows during June. Corporate fundamentals have remained resilient through the first half of 2026, and the fund expects these trends to persist with potential volatility from policy implementation and geopolitical tensions. Spreads remain rich historically but appropriate given the low default environment. The fund continues focusing on balance sheet health, free cash flow generation, and credit resiliency while maintaining caution on deeply distressed names. Yields and sub-par dollar prices remain attractive, though spreads are fair but not compelling.
The fund maintains a constructive view on high-yield bonds supported by resilient corporate fundamentals, active capital markets, and below-average default rates, while acknowledging that spreads are fair but not compelling and remaining cautious on deeply distressed credits amid potential policy and geopolitical volatility.
The fund expects corporate fundamentals to remain resilient and technicals in the high-yield market to stay supportive, though with potential bouts of volatility surrounding policy implementation and geopolitical tensions. Spreads remain rich historically but are appropriate given the low default environment supported by wide open capital markets. The fund believes yields and sub-par dollar prices remain attractive, while spreads are fair but not compelling. The Fed is expected to remain data dependent, and the fund will continue focusing on fundamentals, balance sheets, and free cash flow while maintaining caution on deeply distressed credits.
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