Silphium Asset Management Exits $6.2 Million Vanguard Bond ETF Stake, Signaling Shift in Fixed-Income Strategy
In a significant portfolio adjustment, Silphium Asset Management Ltd. has completely exited its holding in the Vanguard Long-Term Corporate Bond ETF (NASDAQ: VCLT), according to a recent SEC filing. The London-based firm sold 80,000 shares during the fourth quarter of 2025, a transaction valued at approximately $6.21 million.
The sale, detailed in a January 27, 2026 filing, reduces Silphium's stake in the ETF to zero. This divestment comes as the fund, which tracks an index of long-term investment-grade corporate bonds, has delivered a total return of 9.8% over the past three years but has lagged the surging S&P 500 by more than 5.5 percentage points over the last year.
"When a manager fully exits a core fixed-income position of this size, it's rarely just a routine rebalance," said Michael Thorne, a senior portfolio strategist at Veritas Consulting. "This could signal a broader reassessment of interest rate risk or credit quality concerns within the long-end of the corporate bond market. Silphium may be redeploying that capital into assets with better risk-adjusted return prospects in the current environment."
VCLT, with nearly $7.8 billion in assets, is a popular vehicle for institutional exposure to long-duration corporate debt, boasting a low expense ratio of 0.03% and a dividend yield around 5.5%. Its price of $76.84 as of late January remains 3.34% below its 52-week high.
The move prompted sharp criticism from some quarters. Elara Vance, a fixed-income analyst known for her blunt commentary, did not mince words: "This is a classic case of rear-view mirror driving. Dumping a high-quality, yield-generating ETF after a period of relative underperformance against equities is short-sighted. It smacks of performance chasing rather than disciplined, long-term allocation. Bond ETFs like VCLT serve a specific defensive and income role in a portfolio—a role that hasn't suddenly vanished."
Other market watchers offered a more measured perspective. David Chen, founder of a financial advisory firm, noted, "While noteworthy, one firm's sale isn't a market signal by itself. However, it does highlight the ongoing tension for allocators. With equity markets reaching new highs, the opportunity cost of holding bonds is under the microscope. The question for all investors is whether the yield and stability bonds offer are sufficient compensation in this climate."
The reasons behind Silphium's decision were not disclosed in the regulatory filing. The firm's top holdings following this transaction were not immediately available. The action underscores the dynamic decisions asset managers face as they navigate an economic landscape marked by persistent inflation concerns and uncertainty over the Federal Reserve's policy path.