Unexpected tremors in the banking system roiled markets during the first quarter, further complicating the economic outlook. The good news is that the recent volatility has created a buying opportunity, with many bonds in our market trading at historically attractive valuations.
| 1 MO | QTD | YTD | 1 YR | 3 YR | 5 YR | 7 YR | 10 YR |
INCEP (5/31/2011) |
||
|---|---|---|---|---|---|---|---|---|---|---|
| ZEOIX | 0.92% | 1.97% | -1.38% | -2.64% | -0.47% | 0.07% | 0.79% | 1.53% | 1.79% | |
| ICE BofA 0-2 Yr Duration BB-B U.S. HY Index | 0.58 | 1.50 | 6.05 | 7.97 | 3.21 | 3.06 | 3.32 | 3.52 | 3.82 | |
| Bloomberg U.S. Aggregate Bond Index | -0.64 | -0.71 | 1.37 | -1.19 | -4.41 | 0.49 | 0.27 | 1.48 | 1.69 | |
Gross expense ratio as of 3/31/23: 0.99%
The benchmark is the ICE BofA 0-2 Yr Duration BB-B U.S. HY Index.
| 1 MO | QTD | YTD | 1 YR | 3 YR | 5 YR | 7 YR | 10 YR |
INCEP (5/31/2011) |
||
|---|---|---|---|---|---|---|---|---|---|---|
| ZEOIX | 1.22% | -3.39% | -3.29% | -1.76% | -0.67% | -0.15% | 0.71% | 1.42% | 1.65% | |
| ICE BofA 0-2 Yr Duration BB-B U.S. HY Index | 1.05 | 2.05 | 4.48 | 7.76 | 3.41 | 3.01 | 3.34 | 3.53 | 3.75 | |
| Bloomberg U.S. Aggregate Bond Index | -0.36 | -0.84 | 2.09 | -0.94 | -3.96 | 0.77 | 0.44 | 1.52 | 1.78 | |
Gross expense ratio as of 3/31/23: 0.99%
The benchmark is the ICE BofA 0-2 Yr Duration BB-B U.S. HY Index.
Performance data quoted represent past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be higher or lower than the performance quoted. Performance data current to the most recent month end may be obtained by calling shareholder services toll free at (866) 236-0050.
Rates of return for periods greater than one year are annualized.
| Date | ZEOIX | ICE BofA 0-2 Yr Duration BB-B U.S. HY Index | Agg |
|---|---|---|---|
| 2023 YTD (as of 6/30/23) | -3.29% | 4.48% | 2.09% |
| 2022 | -8.72 | -1.69 | -13.01 |
| 2021 | 4.56 | 3.47 | -1.54 |
| 2020 | 1.04 | 1.02 | 7.51 |
| 2019 | 5.49 | 7.10 | 8.72 |
| 2018 | 1.78 | 2.23 | 0.01 |
| 2017 | 2.63 | 4.00 | 3.54 |
| 2016 | 4.32 | 6.64 | 2.65 |
| 2015 | 2.00 | 1.67 | 0.55 |
| 2014 | 2.21 | 2.35 | 5.97 |
| 2013 | 4.21 | 5.36 | -2.02 |
| 2012 | 4.74 | 8.03 | 4.21 |
| 2011 (Since 5/31/2011) | -0.15 | 1.01 | 4.68 |
Venk Reddy joined Osterweis Capital Management in 2022 as part of the Zeo Capital Advisors team transition. Prior to founding Zeo Capital in 2009, Mr. Reddy was a co-founder of Laurel Ridge Asset Management, a multi-strategy hedge fund, where he managed the credit, distressed, and event-driven portfolios. Previously, he structured derivative products and was head of delta-one trading as a portfolio manager within Bank of America’s Equity Financial Products group (EFP). Mr. Reddy also managed investments in event-driven situations, convertible instruments, and options at Pine River Capital Management and HBK Investments, where he started his career.
Mr. Reddy is a principal of the firm and a Portfolio Manager for the sustainable credit strategies.
He currently serves as a Trustee of Lick-Wilmerding High School in San Francisco. He previously served as a Trustee and officer of the Katherine Delmar Burke School in San Francisco.
Mr. Reddy graduated from Harvard University (B.A. in Computer Science with Honors).
Marcus Moore joined Osterweis Capital Management in 2022 as part of the Zeo Capital Advisors team transition, where he was an Assistant Portfolio Manager focused on credit research, including sustainability analysis. Before joining Zeo in 2019, Mr. Moore worked at Wells Fargo Bank for 14 years as an Analyst within Principal Investing, responsible for the retail, consumer, and gaming sectors across various asset classes including high yield bonds, leveraged loans, and structured products. Prior to working at Wells Fargo, Mr. Moore worked at Edison Mission Energy as an analyst and at Hamilton Resources, Procter & Gamble, and Goldman Sachs.
He is a Portfolio Manager for the sustainable credit strategies.
Mr. Moore graduated from Morgan State University in Baltimore, MD (B.S. in Accounting) and from the University of California, Los Angeles Anderson School with an M.B.A. He also holds the CPA designation.
The ICE 0-2 Yr Duration BB-B U.S. High Yield Constrained Index contains all securities in the ICE BofA U.S. High Yield Index rated BB1 through B3 with a duration-to-worst of less than two years.
Effective 6/30/22, the ICE indices reflect transactions costs. Any ICE index data referenced herein is the property of ICE Data Indices, LLC, its affiliates (“ICE Data”) and/or its Third Party Suppliers and has been licensed for use by Osterweis Capital Management. ICE Data and its Third Party Suppliers accept no liability in connection with its use. See https://www.osterweis.com/glossary for a full copy of the Disclaimer.
The Bloomberg U.S. Aggregate Bond Index (Agg) is an unmanaged index that is widely regarded as the standard for measuring U.S. investment grade bond market performance. This index does not incur expenses and is not available for investment. The index includes reinvestment of dividends and/or interest income.
Source for any Bloomberg index is Bloomberg Index Services Limited. BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). Bloomberg owns all proprietary rights in the Bloomberg Indices. Bloomberg does not approve or endorse this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.
The Osterweis Funds are available by prospectus only. The Funds’ investment objectives, risks, charges and expenses must be considered carefully before investing. The summary and statutory prospectuses contain this and other important information about the Funds. You may obtain a summary or statutory prospectus by calling toll free at (866) 236-0050, or by visiting the literature page. Please read the prospectus carefully before investing to ensure the Fund is appropriate for your goals and risk tolerance.
Mutual fund investing involves risk. Principal loss is possible.
The Osterweis Short Duration Credit Fund may invest in debt securities that are un-rated or rated below investment grade. Lower-rated securities may present an increased possibility of default, price volatility, or illiquidity compared to higher-rated securities. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. The Fund may invest more than 5% of its total assets in the securities of one or more issuers. Fundamental investing that integrates sustainability factors will entail deviations from the benchmark, potentially without resulting in favorable Environmental, Social, or Governance (ESG) outcomes.
While the fund is no-load, management fees and other expenses still apply. Please refer to the prospectus for more information.
Osterweis Capital Management is the adviser to the Osterweis Funds, which are distributed by Quasar Distributors, LLC.
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