Fallen Angels & $9.8 Million Bets

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It’s January 26th, and I’m staring at a spreadsheet. Not because I enjoy spreadsheets – honestly, the tiny cells feel judgmental – but because Elevation Capital just dropped nearly ten million dollars into the VanEck Fallen Angel High Yield Bond ETF. Nine point eight four million, to be precise. It’s the kind of number that makes you question your life choices. Like, maybe I should have become a bond trader. Or at least taken that Excel class.

They scooped up 334,227 shares, according to the SEC filing. Which, when you break it down, is a lot of shares. My aunt Mildred buys shares, too, but it’s usually in companies that make porcelain dolls. Different strategies, I suppose. Elevation Capital is clearly betting on “fallen angels” – companies that were once considered safe investments, then…weren’t. It’s a lovely phrase, really. Fallen angels. Sounds like a particularly gloomy rock band.

This isn’t about charity, of course. It’s about yield. Six point sixteen percent, as of the 26th. That’s enough to make even a cynic like me consider a high-yield bond. Though, honestly, the thought of “high yield” always feels a little… precarious. Like a stack of plates balanced on a wobbly table.

As of January 23rd, the ETF was trading at $29.59, up 8.8% over the past year. Which is good. It beat the S&P 500 by 4.24 percentage points. My brother-in-law, a devoted index fund guy, would be thrilled. He’s always muttering about benchmarks. He’s also very good at grilling chicken.

Now, let’s talk portfolio. As of December 31st, Elevation Capital held a total of $244.80 million in reportable 13F AUM. AUM, for those of us who don’t speak fluent finance, is Assets Under Management. It’s a lot of money. Enough money to buy a small island. Or a very large collection of porcelain dolls.

Here’s where things get interesting. The top holdings? BIL, QQQ, QUAL, and, of course, ANGL. BIL, the Treasury bill ETF, is the biggest chunk, at $13.59 million. It’s the financial equivalent of a beige cardigan. Safe, reliable, and slightly boring. QQQ, the Nasdaq 100 ETF, is a bit more exciting. And then there’s ANGL, the fallen angel fund, making up 4.4% of their reportable AUM. It’s the wildcard, the slightly rebellious teenager in the portfolio.

The fund itself holds 64 reportable positions. That’s a lot of bonds. A lot of companies that have, shall we say, experienced a setback. It’s a fascinating strategy. Betting on redemption. Or, at least, on a slightly better credit rating.

The total AUM for ANGL is $3.127 billion. It’s a significant fund, and it’s passively managed, tracking a benchmark index of below investment grade corporate bonds. Which means it’s relatively low-cost, with an expense ratio of 0.25%. Better than average, which is always a good thing. Especially when you’re dealing with millions of dollars.

So, what does this all mean? Elevation Capital sees value in these fallen angels. They believe these companies can recover. Or, at least, that their bonds will offer a decent yield. It’s a calculated risk, and they’re willing to take it. And honestly, in a world of low interest rates, a 6.16% yield is nothing to sneeze at. Even if it does involve betting on companies that have… stumbled.

It’s a strange thing, this world of finance. All these numbers, all these acronyms, all these calculated risks. It feels so far removed from everyday life. And yet, it affects all of us. Whether we realize it or not. I, for one, am going to go make a cup of tea. And maybe, just maybe, I’ll look into those porcelain dolls. They seem surprisingly stable.

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2026-01-30 19:13