AVAH - Polen Capital Q1 2024 U.S. Opportunistic High Yield Commentary

2024-05-12 09:50:00 ET

Summary

• Polen Capital is a high-conviction growth investment manager. We scour the globe in search of the highest quality, sustainable companies to invest in.
• During the first quarter of 2024, the Polen Credit U.S. Opportunistic High Yield Composite returned 2.90% gross and 2.84% net of fees, versus the 1.51% return of the ICE BofA U.S. High Yield Index (the “Index”).
• Stubborn inflation and resilient economic growth led to lower forecasts for U.S. Federal Reserve rate cuts in 2024, driving interest rates higher.
• Credit spreads tightened for high yield bonds and leveraged loans, contributing to lower-rated credits' outperformance.
• We view the current environment as favorable for an active approach like ours to capitalize on the best relative value opportunities across the leveraged credit market, regardless of credit rating.

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