Browse the world's most comprehensive database of hedge fund investor letters, sorted by recent quarter. Access primary source research from leading institutional managers.
| Quarter | Letter Date | Fund Name | QTD | YTD | Tickers | Themes | Quick Take |
|---|---|---|---|---|---|---|---|
Buyside Digest is not affiliated with, and does not endorse, FPA New Income Fund. This analysis is provided for institutional research purposes only and is not investment advice.
"FPA New Income maintains maximum defensiveness with 97% High Quality exposure as credit spreads hit historically tight levels. The fund extended duration to capture attractive risk-free rates at decade highs and initiated TIPS for the first time in 20 years."
FPA New Income Fund returned 0.36% in Q2 2026 as Treasury yields rose 28-38 basis points across the 1-5 year curve following the first Fed meeting under new Chair Kevin Warsh, who eliminated forward guidance and emphasized price stability. The fund maintains a defensive posture with 97% High Quality exposure and only 3% in Credit, as investment grade and high yield spreads sit at historically expensive levels in the 1st-4th percentile. The manager views credit risk as inadequately compensated with markets priced as if nothing could go wrong. In response to attractive risk-free rates at 10-15 year highs, the fund extended duration and initiated a position in 5-year TIPS for the first time in nearly 20 years. The TIPS offer attractive absolute returns across multiple inflation and real rate scenarios without requiring a directional macro view. Portfolio activity included selling shorter-duration ABS and buying longer-duration Treasuries and equipment-backed securities. The fund's 100 basis point duration test guides positioning to expect at least breakeven returns if yields rise 100 bps over twelve months while capturing high single-digit upside if rates decline. Cash increased modestly to 6.8% as the manager patiently waits for credit spreads to widen before deploying capital into riskier assets.
Sign in or create a free account to unlock full commentary, extracted equity pitches, and direct outbound manager source links with your 3 quarterly credits.
