Aperture Credit Opportunities Fund - Q2 2023 Commentary

In Short

Commentary for Q2 2023 on the Aperture Credit Opportunities Fund

Aperture Credit Opportunities Fund: Commentary for Q2 2023

Quarter in Review

 

During the second quarter of 2023, the Fund and small cap market experienced a fair amount of month-to-month volatility as significant cross currents remain. We outperformed the benchmark by roughly 210bps net of fees during the second quarter with a reasonably healthy breadth of return, outperforming in 4 of 6 sectors of focus. Of note, we had 10 positions that generated double digit % returns during the quarter, offset by three double-digit % detractors. The Fund outperformed most meaningfully in both consumer and industrials, two sectors which comprise 65% of our total current exposure. 

While the Fund’s absolute and relative returns were strong for the quarter, it was volatile month to month, lagging the index meaningfully in May and then recovering and outperforming meaningfully in June. Over a two-month period, the Fund outperformed the benchmark by roughly 1%. We raise this point again because, as we’ve discussed in prior letters, we do not think month-to-month returns are especially informative for the Discover Equity strategy. Our concentrated approach, disciplined investment criteria focused on well-positioned companies experiencing long-term dynamic change, and multiple year investment time horizon are designed to provide a healthy but, at times, uneven long-term alpha stream.

 

Download the full commentary below:

Aperture Credit Opportunities Commentary Q2-2023
Picture

© Generali Investments, all rights reserved. This website is provided by Generali Investments and is considered as a marketing communication and financial promotion related to the products and services of the following companies belonging to the Generali group: Generali Asset Management S.p.A. Società di gestione del risparmio and Generali Investments Luxembourg S.A. (hereinafter jointly, Generali Investments). Moreover, the website may contain marketing communication and financial promotion of products and services of companies part of the multi-boutique platform coordinated by Generali Asset Management S.p.A. Società di gestione del risparmio and in particular of Infranity, Sycomore Asset Management, Aperture Investors LLC., Plenisfer Investments SGR, Lumyna Investments, Sosteneo Infrastructure Partners SGR and Generali Real Estate S.p.A. Società di Gestione del Risparmio