Collins Capital Launches Long/Short Credit Strategy

Mar 3 2015 | 2:14pm ET

Alternative investment firm Collins Capital has launched a new long/short credit strategy aimed at generating absolute returns in any market environment. 

The new strategy, named the Collins Long/Short Credit Fund, is in a mutual fund format and sub-advised by Pinebank Asset Management, according to a press release. Pinebank, founded in 2004, dynamically adjusts exposure to the credit cycle by actively managing a portfolio of 25-50 long and short investments in credit-related securities chosen through an in-depth understanding of credit cycles and market liquidity, as well as bottom-up and event-driven credit selection. 

The fund’s twin goals are to provide downside protection for investors and generate positive returns independent of market direction. 

Six years into the credit recovery, yields remain compressed and froth is building in the bond market, noted Collins Capital CEO Dorothy Weaver in the release. In her view, traditional bond portfolios are among the riskiest elements of investors’ portfolios, yet there are few established liquid alternative credit strategies available to mitigate that risk. Accordingly, says Weaver, the environment for a long/short approach to high-yield credit is ripe.

The fund’s two classes will trade under the symbols CCLIX and CLCAX.

Founded in 1995, Florida-based Collins specializes in multi-strategy liquid alternative investment solutions designed to give investors broad access to a variety of hedge funds and strategies.

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