Tuesday, 23 August 2016
Last updated 8 min ago
Oct 4 2011 | 9:46am ET
New York-based hedge fund and structured product specialist GLG Ore Hill has raised $200 million for a large institutional client’s credit mandate.
Ore Hill was acquired by the Man Group in a transaction completed earlier this year. Its operations have been integrated into the GLG Credit Platform which offers 13 credit products—both hedge fund and long-only strategies—managing about $7.4 billion. The platform covers the spectrum of bond asset classes from sovereign debt through liquid, tradable distressed debt and includes more than 25 investment professionals.
GLG Ore Hill, which had $1.7 billion AUM as of September 1, 2011, takes a multi-strategy approach to investment in highly leveraged companies, investing opportunistically in event-driven and special situations in distressed, stressed and non-distressed companies.
“We believe the conditions for high yield investing have improved significantly,” said portfolio manager Ben Nickoll. “The recent surge in yields for higher quality, below investment grade bonds and loans, along with the steep drop in treasury yields, puts high yield securities at an unusually large multiple to the risk free rate. Combined with the benign default scenario for the next two to three years, we believe that high-yield bonds and loans begin to look attractive in comparison to many other asset classes.”
Nickoll and Frederick “Fritz” Wahl are principal officers and portfolio managers of GLG Ore Hill.