BlueMountain Launches $160M Credit Fund

Aug 6 2007 | 2:21pm ET

New York-based hedge fund manager BlueMountain Capital Management is wasting no time in trying to capitalize on the sub-prime driven credit market woes, launching a new $160 million long-term credit fund.

The BlueMountain Defensive Credit Fund will seek to buy undervalued corporate secured loans, which it will hedge by shorting high-yield credit default swaps. The strategy is designed to take advantage of the compression of risk premium between high- and low-quality debt, which BlueMountain expects to decompress “as the credit cycle moves from technical pressure to fundamental deterioration.”

“We have witnessed a significant sell-off across credit markets in recent weeks and are excited that we have the ability to put new investor capital to work in this space,” Jeff Kushner, managing director, said. “We have a long-term commitment to high-yield, leveraged loans and [collateralized loan obligations], all of which are core parts of our business.”

The new fund has a five-year lockup.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

DarcMatter: The Top Trends in Alternative Investments for 2017

Jan 13 2017 | 8:22pm ET

The $7 trillion alternative investments industry is poised for continued growth...

 

From the current issue of

The U.S. Commodity Futures Trading Commission (CFTC) ordered The Goldman Sachs Group Inc., and Goldman, Sachs & Co. to pay a $120 million penalty for attempted manipulation and false reporting of ISDAFIX Benchmark Rates, a global benchmark for interest rate products.