BlueMountain Up Over 10%

Jul 26 2012 | 11:54am ET

BlueMountain Capital Management's flagship credit hedge fund capped off a banner first half with a strong June.

The $4.5 billion Credit Alternatives Fund returned 1.43% last month to finish the first six months of 2012 up 10.17%, The Wall Street Journal reports.  The average hedge fund is up less than 2% on the year, industry indices show.

A substantial chunk of the hedge fund's gains can be attributed to its bets against JPMorgan Chase's disastrous credit default swap index trades. Those positions could cost the bank as much as $9 billion, but they may have enriched BlueMountain by as much as $300 million.

BlueMountain is now reportedly helping JPMorgan unwind its trades, quietly buying default protection to cover them and then selling it to the bank. The hedge fund was founded by a JPMorgan veteran, Andrew Feldstein.

BlueMountain didn't tout its JPMorgan winnings in its letter, instead attributing its June gains to "off-the-run index arbitrage." It also said it had cut its short bets against financials and added exposure to European sovereign debt.


In Depth

Prominent Hedgie Renee Haugerud Embroiled in Ugly Child Custody Battle

Sep 10 2014 | 2:43pm ET

A high-profile hedge fund manager is caught up in a nasty child custody battle in...

Lifestyle

Full House’s Stamos To Play TV Hedge-Fund Manager

Sep 5 2014 | 4:43am ET

The life of a Connecticut hedge-fund billionaire is coming to the small screen.

Guest Contributor

The Cult of Loss Aversion: A Call to Rethink Risk in Global Macro Investing

Sep 4 2014 | 5:45am ET

In the wake of a traumatic loss, whether it is financial or personal, it is just...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

In search of the ‘new normal’ at the Fed

The Federal Reserve keeps baby-stepping toward a “normalization” of monetary policy. But just what is normal?

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.