Blue River Asset Management Launches Offshore Fund

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.


In Depth

Q&A: Reg A+ Will Transform the Alternative Asset Landscape

Jul 7 2015 | 4:03pm ET

In addition to easing capital formation for small companies, Regulation A+ has enormous...

Lifestyle

Fiat Chrysler Files Paperwork For Ferrari IPO

Jul 23 2015 | 5:05pm ET

Italian sportscar maker Ferrari has taken a step closer to a stock market listing...

Guest Contributor

Lifting of Foreign Ownership Limits Signals Sea Change in Vietnam's Capital Markets

Jul 28 2015 | 3:01pm ET

The lifting of restrictions on foreign ownership limits in Vietnam later this year...

 

Editor's Note