Credit managers end year on a high

Ahead of a tumultuous February, January was a strong month for credit markets as all our major credit indices again posted positive returns. Our Arbitrage Fund of Hedge Fund Index delivered the strongest January returns since 2006, climbing 1.63% over the month. Similarly, European and US focused long/short credit funds delivered their strongest January returns seen in five years, climbing 1.16% and 1.17%, on average.

Newcomers       

New entries to our rankings include two distressed debt funds. First, the Cross Sound Distressed Opportunities Fund goes straight to the top in our distressed league tables after returning 28.4% over the last three months. The firms’ founders, Arif Gangat and David Dunn, bring a combined 40 years investment experience including five years spent working together at Arrowgrasss Capital Partners focusing on distressed opportunities. Secondly, Marret Asset Management added their Distressed Debt Fund which was launched in May 2017 and opportunistically invest in the Canadian healthcare industry.

Two further Toronto based managers also joined the rankings. Algonquin Capital, listed their Debt Strategies Fund. The fund has a three-year positive track record and has about $300-400m invested in long/short Canadian fixed income. NorthStream Capital also listed the NorthStream Credit Strategies Fund which offers access to Canadian and U.S. high yield securities to Canadian Investors.

Finally, we added Oakhaven Capital’s Strategic Fixed Income Hedge Fund. The Johannesburg based firm was founded by a team of former Standard Bank fixed-income pros. The $60m fund is concentrated on South African Government Bond opportunities using a relative value approach. The fund has an annualised compound return of 9.55% since its inception in October 2012.

Top funds for August

Top 20 Credit YTD

Top 50 credit l/s funds

Top 10 Convertible arb funds

Top 10 fixed income funds

Top 10 distressed funds

Top 10 Credit FoHF

Top 10 MBS funds

Top 15 Ucits funds

Top ’40 Act funds

* ’40 Act data supplied by Morningstar