Wed, Aug 24, 2016
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. LatAm hedge funds surge in 1H to +24.4%, emerging markets assets rise[more]

    Komfie Manalo, Opalesque Asia: Hedge funds investing in Latin America posted strong gains through mid-2016, reversing declines in four of the past five years, including the last three years, to lead all areas of hedge fund performance through the first half of 2016, according to the latest HFR Em

  2. Asia - LGT Capital Partners: Alternatives set for continued rise in Asia[more]

    From Asianinvestor.net: More flows are likely into insurance-linked strategies, private equity and trend-following strategies/CTAs, given the benefits of such investments, argues LGT Capital Partners. Despite the numerous quantitative easing programs and bailouts of recent years, the quest for

  3. Opalesque Roundtable: Low and high fee investments often better than mid fee hedge funds[more]

    Komfie Manalo, Opalesque Asia: Hedge funds that charge the low and high fees stuff often provide better returns than "those sort of mid-fee investments", said Keith Haydon, chief investment officer of Man FRM. (Alternative) investment managers who charge high fees would often provide the most int

  4. Opalesque Exclusive: Algorithms platform aims to target typical challenges found in quantitative hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva: Last month, Quantopian received investments from Point72 Ventures, the new venture capital arm of Steven Cohen’s Point72 Asset Management.

  5. Hedge fund investors pull $5.7 billion in July[more]

    From Bloomberg.com: Hedge funds suffered a third consecutive month of outflows in July as investors withdrew $5.7 billion, according to industry tracker Eurekahedge. Redemptions totaled $20.7 billion in the three months through July, with money managers betting on equities suffering $18.4 bill