Vancouver-based Fulcra Asset Management has launched its debut hedge fund, focusing on “out of favor” bonds.

The firm, founded by former CI Financial portfolio manager Matthew Shandro, launched the fund yesterday. The new offering is “focused on finding investments we can understand and where free cash flow is reality, not a myth,” Shandro said in a press release.

“By exercising this discipline we can take advantage of inefficiencies in fixed-income markets, where many investors place too much reliance on the rating agencies.”

Before joining CI, Shandro worked at Great Pacific Capital.