Thames River Unveils New Junk Bond Fund

Mar 25 2011 | 11:53am ET

Thames River Capital has launched a new high-yield bond hedge fund.

The Global High Yield Bond Fund will invest in about 50 holdings, weighted towards developed markets but with a substantial chunk of the portfolio in emerging markets, the firm said. It will invest some 80% of assets in high-yield debt, with the remainder being placed in investment-grade bonds.

"Against a backdrop of a rebounding economies and record low interest rates, the high yield market is seeing a rapid decline in defaults and a strong pick-up in recovery rates," Stephen Drew, who manages the fund with Mehrdad Noorani, said. "We see substantial implied value in high-yield credit spreads and this underpins our belief that this is the ideal time to launch a fund with this remit."

The new fund is targeting 10% annualized returns. It is domiciled in Dublin with a £10,000 minimum investment.

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