Fri, Mar 27, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

BH Credit Catalysts posts healthy 4.2% gain in NAV

Monday, September 05, 2011
Opalesque Industry Update - The second half of 2011 is underway and any hopes for reduced market turbulence in the summer months have been forcefully rejected by recent events. Serious macro events have occurred thick and fast through the year: just as April was seeing markets recover from Japan’s disaster in March, market attention refocused and remains focused on the dramatic amount of debt taken on by governments in the ongoing European and US sovereign debt crises.

It has been a volatile year for many event-driven and credit strategies, with some big names in the sector posting YTD losses. Event-driven strategies have struggled to post positive returns, managing a meager 1.37% YTD by July’s end whilst distressed securities strategies posted average losses of -0.84% in July, according to BarclayHedge data. Conversely, the BHCC Master Fund has posted gains of 4.2% in NAV for the first half of 2011, in its half-yearly report: Main Facts:

  • This positive performance has flowed through to the London-listed company’s share price (which is a direct feeder into the BH Credit Catalysts Master Fund), which now trades at a small premium to NAV, as investors see value in an event-driven credit strategy with the risk management of Brevan Howard, which continues to be a winning combination.
  • With access available at a price of a share, BH Credit Catalysts, said listed entity, invests all of its assets net of minimal working capital in the Brevan Howard Credit Catalysts Master Fund Limited. It has assets of $163m.
  • These returns also reflect the fact that the BHCC MF has successfully avoided much of the volatility in credit and MBS markets and continues to offer the prospect for shareholders to achieve sustainable non-correlated returns while preserving shareholder capital.
  • The majority of the Master Fund’s positive performance came from gains in mortgage-backed securities (MBS), as well as gains in all three corporate credit trading areas it has exposure to: performing, distressed and structured corporate trading. The MBS portfolio outperformed MBS indicies such as the ABX subprime series in the first half of 2011.
Source

Press release

bc

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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. Other Voices: Does the hedge fund industry benefit society?[more]

    This article was authored by Don Steinbrugge, Chairman of Agecroft Partners, a US-based global consulting and third party marketing firm for hedge funds. It is no secret that the hedge fund industry is viewed negatively by a la

  2. Private credit comes into focus for investors[more]

    Bailey McCann, Opalesque New York: As investors look for a way out of the low yield/no yield environment, private credit is becoming an increasingly attractive asset class, according to a white paper from Bayshore Capital Advisors. Private credit has grown steadily since the financial crisis as

  3. M&A - Hedge funds no longer attractive targets for banks, reinsurers, Blackstone buys stake in Christopher Pucillo’s Solus event-driven hedge fund[more]

    Hedge funds no longer attractive targets for banks, reinsurers From Institutionalinvestor.com: Swiss RE, the world’s second-largest reinsurer, is looking to sell its 15 percent stake in Jersey, Channel Islands–based hedge fund firm Brevan Howard Asset Management. Morgan Stanley reported

  4. Opalesque Radio: Threadneedle expects continuing equity volatility this year[more]

    Benedicte Gravrand, Opalesque Geneva: Investors should expect more volatility, which is signaling a "slow moving" top to the market, KKM Financial’s founder and CEO Jeff Kilburg told CNBC on Monday. And this volatility is going

  5. Hedge funds show strong performance of 2.52% so far in 2015[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry got off to a strong start in 2015 "completely unmindful" of the poor performance last year, according to data provider Preqin. According to Preqin, following a year which saw the average he

 

banner