Credit investing in energy and transportation
Since the start of the year, the interest rate environment has once again created headwinds for the credit market. Yields temporarily rose by around 45 basis points for 5-year German government bonds and by as much as 60 basis points for 5-year US Treasuries reaching a level that has noticeably put broad high-yield indices under pressure. The currently tight credit spreads in the high-yield segment were unable to act as a buffer during this market phase.
The iTraxx Crossover (5YR) widened in March from +260 basis points to as much as +360 basis points. The iBoxx EUR High Yield Liquid Index lost around 2 percentage points during this period in a generally turbulent market environment. In contrast, an absolute-return credit fund specializing in the energy and transport sectors proved resilient over the same period thereby delivering roughly half the drawdown in this market phase.
Concentration instead of diversification: the approach at a glance
The investment strategy is based on rigorous bottom-up analysis of issuers exclusively from the transport and energy sectors. Investments are made in secured, unsecured, and subordinated bonds. The effective duration is around 2.4 years, a deliberate design feature that makes the portfolio structurally less sensitive to interest rate movements compared to broader credit markets.
Resilient return profile in a challenging environment
The results of the current year confirm the approach: in calendar year 2026, the fund achieved outperformance of around 110 basis points versus the iBoxx EUR High Yield Liquid Index. Since inception in November 2024, the cumulative excess return (EUR share class S) amounts to 33 basis points. The portfolio shows a running yield of 7.1%, while the market-weighted coupon, including derivatives stands at 7.6%. The option-adjusted spread is 279 basis points.
Current portfolio structure and geographic allocation
Current portfolio structure and geographic allocation: Geographically, Europe dominates with 62%, followed by North America with 29%, reflecting the geopolitically driven shifts in the global energy market.
Seeder tranche: window for early investors
The fund’s seeder tranches are available with a minimum investment of EUR 100,000 (ISIN LU2846853427) or USD 125,000 (ISIN LU2846853344). The current fund volume is still below the threshold at which the seeder share classes will be closed. Early investors therefore still have the opportunity to benefit from the preferential terms of this tranche.
Disclaimer
This document is a customer information (“CI”) in the sense of the German Securities Trading Act (WpHG). Responsible as the author for the content is the tied agent listed below. This “CI” is used exclusively for information purposes and cannot replace an individual, suitable investment advice. This “CI” does not constitute a contract or any other obligation or kind of contractual offer. Furthermore, the content does not constitute investment advice, an individual investment recommendation, an invitation to subscribe for securities or a declaration of consent, or a solicitation of an agreement on a transaction in financial instruments.
This “CI” is intended only for professional customers and eligible counterparties with a habitual residence or domicile in the EU and has not been written with the intention of giving legal or tax advice. The tax treatment of transactions is dependent on the personal circumstances of the respective customer and may be subject to future changes.
Recommendations and forecasts are non-binding estimates of future events. They can therefore prove to be inaccurate regarding the future development of a product. The information contained in this document is based exclusively on the date on which this “CI” was provided. A guarantee for the actuality and correctness cannot be given. Past performance is not a reliable indicator of future performance.
This information is protected by copyright; no reproduction or commercial use is permitted. Date: May 27th, 2026.
Author/Issuer: Hubertus Clausius, Seahawk Investments GmbH, Bettinastrasse 62, 60325 Frankfurt am Main, Germany. Investment advice according to section 2 para. 2 no. 4 German Wertpapierinstitutsgesetz (WpIG).
Seahawk Investments GmbH is authorized to provide financial portfolio management, investment advisory services, as well as investment mediation and contract brokering in accordance with Section 15 Paragraph 1 in conjunction with Section 2 Paragraph 2 Nos. 3, 4, 5, and 9 of the WpIG (Securities Institutions Act) and is subject to supervision by the Federal Financial Supervisory Authority (BaFin). Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) Marie-Curie-Straße 24-28, D-60439 Frankfurt am Main.