BlueMountain Flagship Up As Much As 9%

Oct 27 2010 | 10:04am ET

BlueMountain Capital Management is riding credit swaps and the equity portfolios of credit derivatives to enjoy returns double that of the average hedge fund this year.

The $4 billion New York-based firm's flagship Credit Alternatives Fund is up between 8.5% and 9% this year, Bloomberg News reports. The bulk of those returns—some 80%—come from the hedge fund's trading in individual credit swaps as well as its investments in the equity portions of collateralized-loan obligations and default-swap indices.

The Credit Alternatives fund has $2.6 billion in assets under management.

The average hedge fund has returned about 4.5% this year, according to industry indices.


In Depth

Electronifie: Better Bond Trading

May 11 2016 | 3:03pm ET

Technology has revolutionized countless aspects of investing and trading, but the...

Lifestyle

From Modern Trader: Stephen Curry is a Black Swan

May 18 2016 | 7:43pm ET

What do the rise of the Internet, the sinking of the Titanic, 9/11, and Stephen...

Guest Contributor

LendingClub and the Question of Internal Hedge Funds

May 19 2016 | 8:42pm ET

Peer-to-peer lending platform LendingClub Corp. has been in the news since the firm...