Monday, 8 February 2016
Last updated 13 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.