Canadian convertible posts huge returns – June performance review

Canadian convertible bond fund SMI Defensive is currently the top performer in the alt credit space with significant YTD returns of 376.91%.

SMI Opportunities, previously Silvercreek Capital, is a Toronto-based firm run by Bryn Joynt and Louise Morwick. The huge returns for the $92m fund were put down to the “resolution of an outstanding situation [they] had been running for some years”, although the pair did not elaborate further when contacted by ACI.

Copernico Capital Partners’ Latin America Strategic Fund continues to feature highly, despite a -2.75% fall for June reducing YTD gains to 16.97%. The Argentina-based hedge fund has a primary event driven strategy looking for mispriced securities in the region, alongside momentum trades and a range of fixed income instruments.

David Tepper’s flagship $7.95bn Palomino fund moved into the top three despite a -0.54% monthly fall while Deer Park Road’s $1.5bn STS Partners Fund, climbed towards double-digit returns YTD with a 0.60% increase for June.

Other $1bn+ funds in the top 20 include the $2.4bn Pimco Global Credit Opportunity Fund, which was up 1.45% in a tough month for credit managers, and the $1bn Pine River Liquid Rates Fund, up 1.16% in June

The Alt Credit Intelligence data pages are based on self-reported data provided to Morningstar and a number of other sources plus some self-reported returns provided to the HFM team. The liquid alternatives spread is based on data from Morningstar and LuxHedge. If you would like your fund to be listed in future editions please contact paul.mcmillan@hfmweek.com.

Click here for May review

Top Performers in June

NameFund SizeReturns
Top Credit L/S FundSorin Alpha Real Estt Strat-Fund of One$495m3.31%
Top Convertible ARBSMI Defensive LP$92m1.51%
Top Fixed Income ARBBarnegat Investments Ltd$668m1.24%
Top Distressed SecuritiesStornoway Recovery Fund$24m1.97%
Top Credit FoHFPortland Private Income Fund A$11.5m0.68%
Top Alt Credit 40 Act FundBlackRock Allocation Tgt Shares Ser P$305m1.59%
Top Fixed Income ARB UCITS fundAntecedo - CIS Strategic Invest€14m10.21%

Top 20 Overall YTD (June)

NameFund sizeTotal return JuneTotal return YTD
SMI Defensive LP$92m1.51376.91
Copernico Latin America Strategic Cl A$85 m-2.7516.97
Palomino Fund$7.95bn-0.5413.47
Stornoway Recovery Fund$24m1.9713.37
Quest Global Convertible Fund LTD$30 m0.119.38
STS Partners Fund$1,560 m0.609.20
Axa private selection open bonds€31m-2.778.71
Finisterre Global Opportunity Master$879 m0.658.62
Kayne Anderson Infrastructure Income$444 m-0.518.60
Delta Prime ESSF€62m-0.217.96
Acuity Corporate Opportunity Fund Ltd$28 m2.207.47
Endeavour Pembroke Fund Limited$34 m0.706.98
LNG Europa Credit Fund$148m-0.366.65
The Third Friday Total Return Fund, L.P.$18 m-0.026.51
Raven Rock Credit Offshore Fund$206m-1.596.17
Pimco Global Credit Opportunity Fund$2.4bn1.456.00
Sanctum Fixed Income Fund$187m-0.445.95
Pine River Liquid Rates Fund$1,011 m1.165.93
BSI Multi Manager Directional Fund USD M$141 M-0.675.93
Kingdon Credit Master Fund L.P.$378 m-0.335.84
Long/Short Credit
Convertible Arbitrage
Fixed Income Arbitrage
Distressed Securities
40 Act Funds
Fund of Hedge Funds
Alt Credit UCITS