Tue, Jul 29, 2014
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. Hedge fund manager Winton Capital making headway with long-only strategy[more]

    From PIonline.com: North American investors are helping Winton Capital Management Ltd. make progress — albeit slowly — toward its founder's goal of becoming a $100 billion company. The firm's ticket to quadrupling its assets under management is unlikely to be one of its scientifically designed manag

  2. Opalesque Roundtable: Success in hedge fund marketing not linked to performance, but investor appetite[more]

    Komfie Manalo, Opalesque Asia: Success in marketing a fund is not linked to the performance, but to investor appetite, to the way you can market the fund, and to how much time you can spend to raise assets, said Antoine Rolland, the CEO of incubator and seeding firm

  3. Opalesque Radio: Now is a good time to buy protection cheaply in the options market[more]

    Benedicte Gravrand, Opalesque Geneva: Investors are showing an increased interest in risk parity funds and strategies, Opalesque reported last year. Risk parity strategies have the

  4. The Big Picture: Charlemagne Capital smoothes risk out of frontier market investing with portfolio approach[more]

    Benedicte Gravrand, Opalesque Geneva: Opalesque recently talked to one of the portfolio managers of the Oaks funds, which are emerging and frontier market hedge funds focusing on equity long/short with a directional approach. They are run by

  5. Winton’s low-cost equities fund tops $1bn for first time[more]

    From FT.com: Winton, the London-based hedge fund, has increased the assets in its low-cost equities fund to more than $1bn for the first time in a sign that traditional stock managers may come under increasing pressure from computer-driven rivals. Winton, which manages about $25bn in total ass