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

An Interview With Harvest Volatility Management's Rick Selvala

Mar 23 2017 | 5:39pm ET

Several years of extremely low interest rates have pushed some investors into equities...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...

 

From the current issue of