Industry Updates

BlueMountain Capital Management launches 3 new credit funds after $250m asset raise

Tuesday, April 06, 2010

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Opalesque Industry Updates - BlueMountain Capital Management announced that the firm has raised more than a quarter of a billion dollars ($250 million) for three new funds designed to pursue credit market opportunities in the post-financial crisis world. The new funds are the BlueMountain Long/Short Credit Fund, the BlueMountain Distressed Fund and a single-client fund focused on securitized investments. The Long/Short Credit Fund began trading on February 1, 2010, and the other funds launched on April 1, 2010. BlueMountain also plans to create a multi-client asset backed securities fund by the end of the third quarter of this year.

The new funds will provide clients with access to trading strategies already tried and tested in the alternative asset manager’s $2.6 billion flagship fund, BlueMountain Credit Alternatives, but in dedicated products with bespoke liquidity terms. The new funds were designed to meet client needs across different strategies and different areas of the credit spectrum, using terms appropriate to the underlying assets and investment strategies.

BlueMountain believes that its deep and proven fundamental expertise, combined with its specialized knowledge of credit derivatives and structured credit markets, has positioned the new funds for strong performance in the next stage of the credit cycle. “The opportunities created by the fallout from the financial crisis are compelling, but asset managers need strong fundamental, quantitative and technical skills to exploit them effectively,” said Stephen Siderow, president and co-founder of BlueMountain. “This credit cycle is the first to take place in a world with large and developed markets for credit derivatives and corporate structured credit. Additionally, the scale and complexity of the asset-backed securities market is unprecedented.”

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