Centerbridge Credit Fund To Return US$500 Million

Oct 1 2012 | 6:46am ET

Quantitative easing has been a boon to Centerbridge Partners' credit hedge fund. But it's also proving a damper on opportunities for the US$8.3 billion hedge fund.

Centerbridge on Friday told investors in its Credit Partners fund that it would return US$500 million. The firm said that it has as much as US$2 billion of the fund's assets simply sitting in cash due to the paucity of enticing options.

"Absolute yields are in our view strikingly low," Centerbridge wrote in the notice to investors, which was obtained by the Financial Times. "The market currently feels frothy. Should the markets continue on this upward trajectory, the fund will continue to raise cash and distribute it."

Centerbridge launched the Credit fund in 2007; it has returned some 65% since then, without using leverage and has made something of a habit of periodically returning capital to clients. It told investors it continues to actively seek out opportunities, especially in Europe, but that its earlier investments are simply producing too much cash to reinvest.

"While we have been selectively adding to new positions in the U.S. and particularly in Europe, we continue to generate substantial amounts of cash," the firm wrote. "Consequently, we have decided to return a portion to investors."

Centerbridge manages about US$20 billion.


In Depth

High Time For A Cannabis Hedge Fund?

Sep 30 2014 | 7:07am ET

Launching a hedge fund is always a gamble, but Leslie Bocskor's decision to launch...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

September 2014 Cover

High frequency market making

High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...

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.