Polen Capital, an investment management firm, released its “Polen U.S. Opportunistic High Yield Fund” third quarter 2023 investor letter, a copy of which can be downloaded here. The fund yielded a gross total return of 1.68% in the third quarter, surpassing the ICE BofA U.S. High Yield Index by 115 basis points. The rise in U.S. Treasury yields during Q3 led to a positive duration effect for the representative account of the Polen Credit U.S. Opportunistic High Yield Composite due to its shorter duration compared to the benchmark. Additionally, the portfolio’s income advantage and aggregate restructured private equity holdings had notable impacts on its relative performance. Take a moment to review the fund’s top 5 holdings to gain insights into their primary investment choices for 2023.
In its Q3 2023 investor letter, Polen U.S. Opportunistic High Yield Fund mentioned Viasat, Inc. (NASDAQ:VSAT) and explained its insights for the company. Viasat, Inc. (NASDAQ:VSAT) is a Carlsbad, California-based internet service provider commercial company with a $2.3 billion market capitalization. Viasat, Inc. (NASDAQ:VSAT) delivered a -40.19% return since the beginning of the year, while its 12-month returns are down by -47.23%. The stock closed at $18.93 per share on November 9, 2023.
Here is what Polen U.S. Opportunistic High Yield Fund has to say about Viasat, Inc. (NASDAQ:VSAT) in its Q3 2023 investor letter:
“Viasat is a global satellite communications service and equipment provider to commercial and government customers. Specifically, the Company provides consumer satellite internet service to rural customers, in-flight broadband for commercial flights / airlines, and connectivity services and equipment for government use. The portfolio’s holdings in the Company’s 5.625% Senior Notes due 2025 and 6.5% Senior Notes due 2028 traded down during the quarter. In mid-July, Viasat disclosed that they experienced a potentially catastrophic failure of its Viasat-3 Americas satellite. This was during the unfolding of the antennas for the in-orbit satellite, having launched in late April 2023. The Company plans to provide an update in early November on functioning capacity of the satellite and the plan forward on the next 2 satellites in the Viasat-3 constellation. In addition, in September, the banks holding the bridge loans that financed the Inmarsat acquisition syndicated that financing in the broader market. That incremental supply of first lien loans and unsecured bonds weighed on the prices of existing tranches of debt, particularly amidst elevated operational uncertainty. The portfolio continues to hold its positions in this issuer.”
A technician installing high-speed internet cables.
Our calculations show that Viasat, Inc. (NASDAQ:VSAT) does not belong on our list of the 30 Most Popular Stocks Among Hedge Funds. Viasat, Inc. (NASDAQ:VSAT) was in 13 hedge fund portfolios at the end of the second quarter of 2023, compared to 13 funds in the previous quarter. Viasat, Inc. (NASDAQ:VSAT) delivered a -39.64% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q3 2023 page.
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Disclosure: None. This article is originally published at Insider Monkey.
