Point Clear’s Short-Biased Credit Strategy To Go Long

Jan 11 2008 | 10:05am ET

Fairhope, Ala.-based Point Clear Capital Management is betting on continued volatility in the credit markets, and is adjusting its credit hedge fund accordingly. The $80 million shop is transforming its Alpha 1 Fund from a directional short strategy to a long/short one.

“We felt it was the right call to be in directional short positions early in that fund and now that we’re entering into a wider spread, more volatile environment, we’re staying with a short-bias and picking our entry points to start taking long credit risks,” said Lyle Minton, partner. “The name of the game going forward is still a wider posture with a lot of volatility.”

The Alpha I Fund and its levered versions, Alpha 50 and Alpha 150, returned 22.17%, 16.84% and 39.05%, respectively, last year. The firm’s Piedmont Fund is an offshore structured credit fund with a short bias to exposure to the U.S. investment-grade corporate bond market. The fund implements its short credit position through the trading of credit default swaps. The firm offers its funds in credit-linked notes, allowing it to issue different funds on the same platform.

The Piedmont Alpha fund charges a 1% management fee and a 20% incentive fee.


In Depth

Israeli Hedge Fund Harnesses Big Data

Jul 28 2014 | 8:10am ET

Apica Green is a multi-million dollar Israeli hedge fund that is based in Tel Aviv...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

Compelling Opportunities In The Alternatives Space

Jul 29 2014 | 9:33am ET

In an environment where many asset classes seem expensive by historical standards...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note