The Opportunistic Credit Fund decreased its position (sold securities) in AMSR Trust, and decreased a portion of its position (sold securities) in Progress Residential Trust, bringing the total portfolio cost-basis to approximately $11.5 million in invested principal as of October 31, 2023. (Note: Invested principal does not include any mark-ups or write-downs as a result of market changes.)
These adjustments to our holdings broadly reflect our analysis regarding the near-term outlook for the public and private markets, where we have identified favorable opportunities in market dynamics to invest either in the private market through asset-backed securities and corporate bonds, or in the public market through publicly-traded REITs, at advantageous rates.
The Opportunistic Credit Fund began purchasing ABS and homebuilder bonds at the end of last year, and we plan to continue to manage this portfolio on an ongoing basis as long as the current dynamic of pricing dislocation in credit markets exists. We believe this period of exceptionally attractive pricing is temporary and most acute in primary auctions. As before, we intend to focus on ABS pools issued by the most creditworthy borrowers and where the collateral (i.e., the portfolio rental homes) consists of high-quality homes in strong locations that we might otherwise be buyers and owners of in our other funds over the long-term.
See the table below for a detailed breakdown of the fund’s bond and ABS holdings as of October 31, 2023.
For more information about our private credit investment strategy, please refer to this post.
