Swiss Hedge Fund Launches Credit Fund of Funds

Nov 3 2008 | 11:10am ET

Zurich, Switzerland-based Hedge Fund Capital Management is launching a fund of hedge funds to take advantage of the major dislocations that have taken place in credit markets in recent months.

The Credit Opportunities Fund will initially focus on two main sectors: corporate debt markets (predominantly first lien loan and credit long/short managers) impacted by the financial sector freeze on lending and global liquidity crisis; and securitized debt markets (predominantly mortgage backed securities/asset backed securities managers), which have suffered due to the subprime mortgage debacle and global liquidity crisis.

Corporate and MBS/ABS securities are priced at historically low levels, in many cases discounting default rates rising to and remaining at levels significantly above anything seen in the past 50 years, according to Iain Hamilton, portfolio manager.

“Managers who have been able to avoid liquidating positions are now holding heavily marked down assets which have the potential to deliver attractive performance through the significant coupon/loss adjusted yields (carry) and capital appreciation (pull to par) available at the moment on these “frozen” illiquid investments,” said Hamilton. “We see an immediate opportunity, similar to that exploited by investors in the aftermath of the S&L crisis of the early 1990s and following the corporate defaults of the early 2000s.”


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.