Wed, May 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 Japanís 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 Julyís 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 companyís 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 Fundís 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. Opalesque Exclusive: SEC approves proposed changes to Form ADV, '40 Act - comment period to follow[more]

    Bailey McCann, Opalesque New York: Hedge funds and providers of liquid alternatives will want to pay close attention to proposed reforms approved by the SEC yesterday. The changes will require more frequent reporting, as well as a closer look into social media, liquid alternative strategies, and

  2. Investing - Hedge funds buy swathes of foreclosed subprimes, force up rents, float rent-bonds, Hedge funds buy Actavis, Valeant. ETFs join the party, The most loved biotechs of big hedge funds, Stocks to buy ... according to hedge funds, Atlantic City bond offering attracts hedge funds as buyers, Okumus Fund Management discloses huge new Ascent Capital Group stake[more]

    Hedge funds buy swathes of foreclosed subprimes, force up rents, float rent-bonds From Boingboing.com: When a giant hedge fund is bidding on all the foreclosed houses in a poor neighborhood, living humans don't stand a chance -- but that's OK, because rapacious investors make great landl

  3. Institutions - Institutional investors turn to real estate, planes, Assets at Bostonís five biggest family nonprofits rise to $3.5bn[more]

    Institutional investors turn to real estate, planes From Joins.com: The National Pension Service and domestic emerging market specialists who did not know where to invest in a low interest rate environment are turning to other investments like the blue-chip real estate market abroad.

  4. Opalesque Exclusive: A lot of hedge fund investors are beginning to recognise the need for ongoing cyber threats monitoring[more]

    Benedicte Gravrand, Opalesque Geneva: Corporate Resolutions Inc. recently formed a strategic partnership with iThreat Cyber Group. The two companies have worked together for years, assisting clients when challenging

  5. Opalesque Exclusive: BMO launches multi-strat '40 act fund[more]

    Bailey McCann, Opalesque New York: As we reach new market highs, investors are looking for a way to diversify and protect their portfolios from a potential market correction. Liquid alternatives are rapidly gaining ground as a critical tool for investors to use to mitigate downside risk. The BMO

 

banner