June 2021 | Issue 235
Fund performance
CLO funds outperform as two hit over 100% 12-months return
CLO funds swatted away the competition in April on their way to dominating our top 10 credit hedge fund return table after an upbeat April.
Creditflux index returns April (%)
The three non-CLO funds in our top 10 employ different strategies. Corporate distressed fund Serone European Special Situations Fund made 4.73% in April, pushing its year-to-date figure to 14.93%. Structured finance fund III Credit Opportunities Fund, which invests across cash and synthetic structured credit, gained 3.61%. That matches Napier Park Global Capital’s Deep Value Credit Fund from the credit multi-strategy category (which allocates to CLOs among other assets).
12-month return figures now take on a different complexion as we have moved beyond the March 2020 slump and rapid bounce back. This has helped keep two Lupus Alpha funds in the triple figure range, as Lupus Alpha CLO Opportunity Notes I and II have hit 100.88% and 137.24% respectively.
Leading fund
BK Opportunities Fund IV
Crystal Funds took top spot in April as BK Opportunities Fund IV returned 6.35%, boosting the fund’s YTD returns to 7.99% and its annualised return since inception to 5.01%.
Olivier Gozlan, portfolio manager at Crystal Funds, says: “Various positions in the fund purchased before the coronavirus vaccine announcement are now showing strong performance, which, alongside redemptions and active trading, made April a strong month for the fund.”
The previous fund in the strategy, BK Opportunities Fund III, reached maturity in March after making annualised returns of 14.5% and winning Creditflux’s Best CLO Fund award in 2019. Gozlan says the fund navigated the pandemic well and increased liquidity meant the firm was able to either liquidate or await redemptions for the remaining portfolio.
Top credit funds in April (%)
BK Opportunities Fund IV vs CLOs Cumulative returns (%)
*Data since fund inception (April-17)
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Global credit funds & CLO's
June 2021 | Issue 235
Published in London & New York.
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