Mon, Oct 5, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

High Yield hits a speed bump in July

Tuesday, August 19, 2014

Bailey McCann, Opalesque New York:

The High Yield market saw its first down month in July, a month which was market by end of month turbulence. July was the first down month for the cohort since August of 2013, with a drop of -1.36%. Yields experienced their sharpest increase since May/June 2013 when the 10-year Treasury almost doubled.

Credit specialist fund Millstreet Capital noted the wobble in a monthly investor letter obtained by Opalesque. Millstreet is a Boston-based credit fund with a long/short high-yield portfolio with a large event-driven component. They concentrate mainly on small and mid-cap High Yield and focus on fundamental value. Millstreet is managed by Craig M. Kelleher, CFA, and Brian D. Connolly both previously held positions at Regiment Capital Advisors a Harvard Management Company High Yield spinoff.

Millstreet's performance was up 0.62% overall for the month, and is up 9.26% year to date.

The letter noted that markets also bore the brunt of a spate of heavy withdrawals - $5.4 billion worth of redemptions over the last three weeks of the month. Those redemptions happened alongside growing geopolitical tensions.

Despite being High Yield investors, the fund notes it was able to muddle through July with the long side of the portfolio benefiting from short duration plays investing at the top of the capital structure. The short side saw a bump from exploiting over-levered credits either through outright shorts or capital structu......................

To view our full article Click here

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. Performance - Hedge fund moguls Einhorn, Loeb, Rosenstein lose money in September, Risky strategy sinks small hedge fund[more]

    Hedge fund moguls Einhorn, Loeb, Rosenstein lose money in September From Billionaire stock pickers David Einhorn, Daniel Loeb and Barry Rosenstein on Wednesday told their wealthy investors they lost money in September as market turmoil inflicted more pain on some of America'

  2. Opalesque Exclusive: IRAs represent billions of untapped capital for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva: Retirement accounts might not be the first source that comes to mind for those looking to raise funds, but they may represent billions of untapped capital. Unlike traditional retirement accounts,

  3. Opalesque TV: One way to access market hedge funds in the EU under the AIFMD radar[more]

    Benedicte Gravrand, Opalesque Geneva: While the Cayman Islands, the US and Hong Kong await the pan-European marketing passport to be extended to alternative investment fund

  4. Investing - U.S. biotech bloodbath hits hedge funds but some bargains emerge, Computer-driven hedge funds betting on further stock selloff[more]

    U.S. biotech bloodbath hits hedge funds but some bargains emerge From A seven-day selloff of U.S. biotechnology stocks has hit sector investors - especially hedge funds - hard. But some managers say it was overdone and are already eyeing bargains such as Gilead Sciences Inc

  5. Vilas’ equity long bias hedge fund generates market-beating results[more]

    Komfie Manalo, Opalesque Asia: The Vilas Fund, an equity long bias fund managed by Chicago, Illinois-based Vilas Capital Management, posted five-year annualized returns, net of fees, of 23.47% vs. 15.87% for the S&P 500 Index, including divid