Fri, Apr 25, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Acito: aligned interests, education are critical to credit investing

Wednesday, May 15, 2013

amb
Chris Acito
Bailey McCann, Opalesque New York:

For $700m multi-manager hedge fund Gapstow Capital Partners, credit investing has a lot to offer. Chris Acito, CEO/CIO of Gapstow recently sat down with Opalesque TV to discuss where his managers are finding opportunity in the credit markets.

According to Acito, Gapstow finds an edge in credit investing by maintaining a broad view of credit opportunities beyond corporate debt or high yield. In addition to these asset classes, Gapstow looks at loans, convertibles and structured products. They also look at consumer debt, commercial real estate and bank investments. For him, diversifying the credit return stream is important and can offer notable upside.

He says that investors should have much more of their portfolio invested in credit strategies through these other asset classes if they want to maintain a truly diversified credit position. "If you go to even a sophisticated institutional investor and you ask them how much is invested in credit, the answer typically comes out to be less than 10% of the overall portfolio," he explains. "Credit is where you take some of that risk either on the principal component, or the timing and amount of payments that are associated with that investment. With that definition, and even using the broader four sub-buckets that we talked about before, again even for a sophisticated portfolio, ......................

To view our full article Click here

Banner
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Rainwater and Blue Sky - an Australian water fund emerges[more]

    Bailey McCann, Opalesque New York: Financial reporters often tout new funds and investments as uncorrelated investments, but few can say they are uncorrelated to everything but weather. Enter Blue Sky Alternative's water fund which invests in the permanent rights to Australia's water. Sev

  2. Regulatory – Expect greater SEC scrutiny of hedge funds that share information or collaborate in advance of their trades, Alternative funds to get SEC test for leverage, liquidity[more]

    Expect greater SEC scrutiny of hedge funds that share information or collaborate in advance of their trades From Thelawyer.com: A recent Wall Street Journal article — ‘Activist investors often leak their plans to a favoured few’ — focused attention on ‘activist’ investors and stock analy

  3. …And Finally – This week's least competent criminal is Austrian[more]

    From ABCnews.go.com: A German sought by authorities for alleged fraud has been arrested in Austria — after dropping into a police station to ask officers whether he was under investigation. Police in Salzburg said the 59-year-old man walked into a police station in the city on Friday night. Sp

  4. Investing – Hedge funds find pitfalls along with profits in real estate ventures, Marcato Capital Management makes new bet on Dillard’s[more]

    Hedge funds find pitfalls along with profits in real estate ventures From Law360.com: Hedge funds have joined the rush to real estate deals and development in recent months to close the financing gap left by tightening bank standards, but attorneys say many aren't prepared for the disclo

  5. Agecroft Partners estimates 90% of hedge funds using social media[more]

    The use of social media has increased significantly within the hedge fund industry over the past couple of years. Social media is broadly used by investors as part of their due diligence process on hedge funds, by service providers in their sales efforts to hedge funds, and by hedge funds to enhance