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 |
|---|---|---|---|---|---|---|
Thornburg Investment Income Builder Fund delivered a 5.67% return in Q2 2026, bringing YTD returns to 16.15% and trailing 12-month returns to 32.96%. The fund paid ordinary dividends of $0.288 per share in Q2, up 5.5% year-over-year, with more than 70% of equity holdings increasing dividends in local currencies in 2025. Information technology firms, particularly semiconductors like Taiwan Semiconductor, Samsung, Broadcom, and Cisco, were the strongest contributors to quarterly performance. Diversified financials and insurers including BNP Paribas, Citigroup, Bank of Ireland, and NN Group also contributed positively. Telecommunications operators and integrated energy firms detracted from performance. The portfolio maintains exposure to dividend-paying firms with resilient businesses and strong capital structures. The weighted average equity dividend yield of 3.5% significantly exceeds the MSCI Index yield of 1.6%, while the portfolio's P/E ratio of 13.0x compares favorably to the index's 19.5x. Despite elevated U.S. equity valuations, ongoing inflation concerns, and geopolitical uncertainty, the managers believe the portfolio incorporates significant intrinsic value and is well-positioned to deliver attractive future returns through a combination of dividend growth and capital appreciation.
Thornburg Investment Income Builder Fund focuses on dividend-paying firms with resilient businesses, strong capital structures, and attractive valuations that can deliver growing income streams and capital appreciation over time.
The outlook for financial asset returns is uncertain. The managers are optimistic about the future return potential of the fund's assets because virtually all the businesses in the portfolio retain their market positions providing important products and services that generate cash flows to pay attractive dividends, today and in the future. They believe the holdings are valued attractively in relation to their own histories and relative to other assets. The portfolio incorporates significant intrinsic value with a weighted average P/E ratio of 13.0x versus 19.5x for the MSCI Index.
As of Jul 17, 2026
Steven Klopukh leads the fund with over 30 years of investment experience, having joined Thornburg in October 2020 specifically to develop small- and mid-cap strategies. Previously, he spent 18 years at Allianz Global Investors as director and lead portfolio manager for U.S. Small- & Mid-Cap Growth strategies. His background includes fundamental equity analysis at CDC Investment Management Corp. and investment banking at Morgan Stanley Dean Witter. Tim McCarthy serves as co-portfolio manager, bringing complementary experience from Allianz Global Investors where he worked alongside Klopukh for nearly two decades in SMID equity investing.
Lead Portfolio Manager
Moderate Conviction Bullish
Market Conviction
The fund holds a concentrated portfolio of 25 named equity positions comprising 67% of assets, with individual position sizes ranging from 1.2% to 6%. The managers provide specific performance data, dividend yields, and growth rates for each top holding. They make clear statements about valuation attractiveness (13.0x P/E vs 19.5x for the index) and express optimism about future returns. However, the portfolio is diversified across 61 total equity positions plus 150+ debt securities, and some hedging language is present regarding the uncertain outlook. The specificity of holdings and clear valuation thesis support a high-moderate conviction score.
Growth Outlook
The letter acknowledges significant macro challenges including elevated valuations, inflation concerns, geopolitical tensions, and economic uncertainty. However, it balances these concerns with optimism about the fund's specific holdings and their return potential.
Risk Appetite
The fund maintains its strategic allocation to dividend-paying equities (88% equity exposure) and continues currency hedging strategies. The positioning reflects a constructive but measured approach to risk, maintaining exposure while managing downside through hedging.
Capital Deployment
The letter states 'we have maintained your portfolio's exposure' to dividend-paying firms, indicating no significant change in positioning. The equity allocation remained at approximately 87% of assets, consistent with prior periods. Sector weights shifted modestly (largest change was +2.8% in information technology), suggesting rotation rather than net deployment. The bond allocation remained at 13% of assets. No cash level changes or explicit deployment activity is described. This represents capital rotation and maintenance of existing positions rather than net deployment or de-risking.
Forward Guidance
Managers explicitly state they are 'optimistic about the future return potential' and believe holdings are 'valued attractively.' The forward guidance suggests continued commitment to the current strategy with confidence in long-term prospects.
Language Signal
The letter uses positive language including 'optimistic about the future return potential,' 'attractive valuations,' 'significant intrinsic value,' 'resilient businesses,' and 'strong capital structures.' Risk language is present but balanced, including 'uncertain,' 'volatile,' 'elevated valuations,' and 'challenges.' The discussion of positive contributors to performance and dividend growth adds bullish tone. The net balance leans moderately positive with constructive framing of the portfolio's positioning despite acknowledged macro headwinds.
Perceived Risk
The managers identify multiple specific macro risks including elevated valuations, inflation challenges, geopolitical tensions, government debt issuance, and market volatility. These risks are discussed in detail with meaningful analysis of their potential impacts on markets and the economy.
Opportunity Density
The managers express optimism about the portfolio's future return potential and believe the holdings are 'valued attractively in relation to their own histories and relative to other assets.' They highlight that the portfolio's 13.0x P/E ratio compares favorably to the MSCI Index's 19.5x and that the 3.5% dividend yield significantly exceeds the index's 1.6%. The letter notes that 'equity multiples vary widely across the globe and by sector,' suggesting selective opportunities exist. However, they acknowledge elevated U.S. market valuations and maintain rather than expand positioning. This indicates a moderately selective opportunity set with good value in specific areas rather than broad abundance.
Time Horizon
The fund's structure and strategy emphasize long-term dividend growth and compounding. The letter highlights the fund's 23.5-year track record and notes that a hypothetical investor would have received $200,823 in cash dividends over 94 quarters. The managers focus on 5-year dividend growth rates for holdings and discuss businesses that 'generate cash flows to pay attractive dividends, today and in the future.' The emphasis on maintaining exposure to resilient businesses with strong capital structures suggests a multi-year holding period. However, the letter also discusses quarterly performance and near-term macro factors, indicating some attention to shorter-term catalysts. The dividend growth focus and long-term framing support a moderately long time horizon.
Top Conviction Themes
Key Catalysts
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