Tue, Mar 19, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

Credit hedge funds continue rally - Millstreet up 3.99%

Tuesday, July 22, 2014

Bailey McCann, Opalesque New York:

Millstreet Capital Management has posted a positive quarterly return for its credit fund - Millstreet Credit Fund. The fund generated a net return of 3.99% for the quarter, and monthly returns of +1.34% net in April, +1.08% net in May, and +1.52% net in June. Year-to-date, the fund earned a net return of +8.58% according to an investor letter obtained by Opalesque.

Over the past twelve months, the fund is up +17.28%. Since inception, the fund’s returns have been +44.66% with a Sharpe ratio of 1.5.

The fund outperformed a handful of credit indices including the Citigroup High Yield Market Index, Credit Suisse Leveraged Loan Index, and HFRI RV: Fixed Income-Corporate Index, which averaged a return of 2.17% for the quarter.

On an exposure basis within the credit universe, fixed income saw broad based highs with emerging market bonds, investment grade bonds, and 10-year treasuries all posting returns above 2.5%. High Yield was also positive despite trailing fixed income investments.

The High Yield market is showing some resiliency, however, the market benefitted from the rally in 10-yrs. Stronger new homes and jobs data also bolstered returns even though GDP estimates were revised downwards. Yet, as spreads continue to widen, the letter notes that Millstreet is positioning itself away from the High Yield market. They have also steadily increased their hedges since the beginning of the year.

The firm sees greater oppor......................

To view our full article Click here

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1