The BlackRock Credit Relative Value Fund posted negative returns for the first quarter of 2026. Institutional shares returned -0.44 percent while investor A shares returned -0.55 percent.
Managers reduced the fund's gross exposure from 148 percent to 123 percent over the period. Net long exposure rose from 70 percent to 81 percent, accompanied by a modest increase in cash bonds.
The United States contributed the most to performance on a regional basis. BlackRock remains optimistic about overall growth prospects for 2026 while noting tighter credit spreads.
The firm expects absolute return strategies to generate most opportunities in the medium term. It plans a tilt toward higher-quality and more liquid holdings in traditional and carry strategies.