U.K. Firm Launches Credit FoHFs

Jun 6 2008 | 2:58pm ET

U.K.-based Absolute Return Partners this month launched a credit fund of hedge funds to take advantage of the current dislocation in large parts of the credit market.

The ARP Credit Opportunities Fund is a multi-manager offering investing in credit funds across the spectrum. Loan funds and opportunistic credit funds will initially dominate the asset allocation of the fund while distressed funds will become more prominent in the portfolio later on, according to the firm.

That said, the portfolio will have a distressed securities component from the outset, as the financial services industry in general, and asset backed securities in particular, currently offer attractive opportunities for distressed securities investors.

Niels Jensen, a senior partner at Absolute Return Partners, said the firm’s seed investors “encouraged” it to create a concentrated portfolio of high conviction, high quality credit funds so the fund will remain a concentrated multi-manager fund with only eight to 10 underlying funds.

And because of its high conviction, the firm has decided to only charge investors a performance fee.

 


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of