Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st December 2025
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
The Gramercy Emerging Markets Debt Fund delivered positive performance in December 2025 despite volatile global market conditions. The Federal Reserve's 25 basis point rate cut to 3.5%-3.75% exposed deep committee divisions, creating uncertainty about future monetary policy. However, accelerating dollar weakness (DXY down 1.14%) provided a significant tailwind for emerging market assets. The Fund's performance was driven by two primary factors: strong security selection within local-currency sovereign credit, particularly South Africa, and beneficial exposure to high-yield sovereign bonds as spreads tightened and sentiment improved in select distressed names. High-yield segments significantly outperformed investment grade across both sovereign and corporate bonds, reflecting investor preference for carry assets. Performance was partially offset by underweight positioning in lower-beta local currencies like Indonesian rupiah and Malaysian ringgit, which performed well amid broad dollar weakness. The Fund's exposure to investment-grade assets also created modest drag in the softer rates environment where duration was negatively impacted.
The Fund capitalizes on emerging market debt opportunities through selective exposure to high-yield sovereign credit and local-currency bonds, benefiting from dollar weakness and spread compression while managing duration risk in a volatile rate environment.
The Fund appears positioned for a preference toward higher-yielding carry assets going into 2026, as evidenced by the outperformance of high-yield segments and spread compression trends.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 14 2026 | 2025 Q4 | - | Dollar, emerging markets, Fed, fixed income, High-yield, rates, Spreads | - | Federal Reserve delivered a 25 bps rate cut to 3.5%-3.75% range amid deep FOMC splits and uncertainty about future path. U.S. Treasury yields rose with curve steepening, reflecting uncertain Fed trajectory and renewed term-premium fears. U.S. dollar slide accelerated, sending DXY to lowest level since early October with 1.14% monthly decline. Dollar weakness provided tailwind for EM currencies and supported emerging market performance. Market sentiment was cautious and volatile despite Fed easing. High-yield segments significantly outperformed investment grade across both sovereign and corporate bonds, with spreads compressing as investors selectively added risk going into 2026. |
| Oct 16 2025 | 2025 Q3 | - | credit spreads, duration, emerging markets, high yield, sovereign debt | - | The fund benefited from strong performance across emerging market debt as rate cuts and demand for quality assets lifted sovereign and corporate bonds. Gramercy highlights tighter spreads, constructive risk sentiment, and duration exposure as key contributors. It remains focused on duration management and selective credit exposure amid mixed global data and elevated geopolitical risks. |
| Jun 30 2025 | 2025 Q2 | - | emerging markets debt, Fiscal Discipline, income, real yields, sovereign spreads | - | The letter emphasizes emerging markets debt as a compelling opportunity driven by improving sovereign balance sheets and disciplined fiscal policy across many EM countries. Management highlights that higher real yields and lower leverage relative to developed markets provide a cushion against global volatility. The fund positions EM debt as an income-oriented asset class with diversification benefits as global monetary cycles mature. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
DollarDollar depreciated -9% against trading partners in 2025, worst year since 2017. De-dollarization trend accelerating as world shifts away from US. Reduced net dollar exposure from 25% to 8% following geopolitical tensions and superpower positioning concerns. |
Depreciation De-dollarization Reserves Geopolitical |
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 AppetiteManager emphasizes disciplined risk management through cycle awareness rather than market timing. Fund maintains cash cushion during high-risk periods and deploys capital countercyclically. Approach focuses on behavioral edge by having cash available when fear creates best entry points and avoiding leverage that leads to forced selling. |
Leverage Cash Volatility Positioning Discipline | |
| 2025 Q3 |
Duration |
|
Emerging marketsGlobal equities, especially those outside the U.S., powered equity returns. In emerging markets, shares of companies linked to commodities were the strongest performers as commodities rallied. Even after a strong year for international and emerging markets shares, we still see some of the best value in the world in these areas. |
International Commodities Non-US Best Value | |
Fixed Income |
||
| 2025 Q2 |
Debt |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
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| No ticker commentary found. | |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
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| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
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| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||