Wednesday, 30 July 2014
Last updated 6 min ago
Dec 8 2005 | 5:06pm ET
Belvedere, Calif.-based Blue River Asset Management has launched an offshore hedge fund domiciled in the Cayman Islands, the Blue River Muni International fund.
The new offering, managed by Robert Bigelow, employs a relative value municipal bond arbitrage strategy. The fund has approximately $50 million in commitments, and is targeted at U.S. tax-exempt institutional investors such as pension funds and endowments, as well as offshore investors.
According to sources close to the firm, Blue River’s four-year-old onshore municipal-arbitrage vehicle, which uses the same strategy as the new fund, has generated tax-free cash income of over 10% per year while taking AAA credit risk and zero net duration risk.
The expectation is that the offshore municipal arbitrage fund will generate about 1% more in annual income with the same credit and duration risk. Blue River Asset Management has just under $2 billion in assets under management.
The fund has a one-year lockup and a minimum investment of $1 million.
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…