Monday, 24 November 2014
Last updated 38 min ago
Oct 20 2010 | 3:08am ET
Avenue Capital Group is set to launch a listed high-yield debt hedge fund.
The Avenue Income Credit Strategies Fund will invest most of its assets—at least 80%—in a variety of high-yield products, including leveraged loans and collateralized debt obligations. The fund may also invest in credit default swaps and currency derivatives, among other asset classes, Avenue said in a regulatory filing.
In its preliminary prospectus, Avenue wrote that it "believes that the changing investment environments over time offer attractive investment opportunities in the markets for credit obligations."
"To both capitalize on attractive investments and effectively manage potential risk, the Fund believes that the combination of thorough and continuous credit analysis, diversification of holdings and the ability to reallocate investments among different categories of investments at different points in the credit cycle is critical to achieving higher risk-adjusted returns, including high current income and/or capital appreciation, relative to other high-yielding investments," the prospectus reads. "The Fund expects to emphasize high current income and capital appreciation by investing generally in Senior Loans and in second lien or other subordinated loans or debt, including stressed securities and derivatives."
Most of the details about the new fund remain unclear. Avenue did not specify where it plans to list the fund, which firms will be its service providers or what fees it plans to charge. It did say it would sell the shares for $20 apiece, and that it expects to launch it next year.
Avenue's plans were first reported by Bloomberg News.
Nov 4 2014 | 9:45am ET
Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…
Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...