Wednesday, 31 August 2016
Last updated 19 hours ago
Jul 12 2012 | 10:54am ET
One of the hedge funds that harpooned JPMorgan Chase's "London Whale" has launched a credit hedge fund.
Hutchin Hill Capital rolled out its Liquid Credit Strategy this month with $100 million from a British pension fund. The new fund employs the same long/short credit strategy that is one of the seven that make up its flagship multi-strategy fund.
"Given the continued uncertainty around the Spanish banking sector bailout and [Prime Minister Mario] Monti's government in Italy, we are looking to take advantage of panicked short covering into [last month's European] summit by selectively entering new shorts," Hutchin Hill said in a July 4 letter to investors.
The long/short credit strategy will remain a part of the Hutchin Hill Capital Master Fund. The new Liquid Credit Fund plans to raise only a "limited amount of capital" over the next few months, Dow Jones Newswires reports.
The strategy has returned 2.52% this year after adding 0.1% last month.