The Virtus Newfleet Senior Floating Rate Fund (Class I) achieved a 0.11% return in Q1 2026, outperforming the S&P UBS Leveraged Loan Index which posted a -0.47% return. The fund's strong performance was primarily driven by strategic underweighting and astute issue selection within the information technology sector, which experienced a selloff fueled by AI disruption concerns. Conversely, issue selection in CC, C, and default credits had a negative impact on the fund's performance during the quarter.

Veralto Corporation, a recent spin-off from Danaher, is implementing a cost optimization program aimed at generating $70 million in annual savings by 2028. This initiative is expected to boost EPS growth, exceeding sales increases, and positively influence its market valuation. The Water Quality division is experiencing strong demand, particularly from data centers, while the PQI segment anticipates a recovery in the latter half of the year. Despite potential challenges such as inflation and execution risks, the company projects stable free cash flow conversion and achievable margin targets.

This article explores the promising outlook for Telephone and Data Systems (TDS), focusing on its strategic initiatives in fiber service expansion and broadband network enhancement. The author rates TDS as a 'Buy' for long-term investors, suggesting that these foundational investments are poised to drive substantial future growth and competitive advantage in the telecommunications sector. The emphasis is on increasing customer base and leveraging robust infrastructure.