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Global credit funds & CLO's
March 2024 | Issue 262
Published in London & New York.
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March 2024 | Issue 262
Data
funds
Fund performance
Fund performance
CLOs celebrate new year with continuing domination of top 10
A familiar sight in 2023, CLO funds continued their dominance of the Creditflux rankings into the new year, as the category claimed eight out of 10 of the top spots for January.
Creditflux index returns January (%)
European CLO managers, Spire and Fair Oaks, each had a fund making up the remaining spots from the credit multi-strategy and ucits categories, respectively. However, both funds have exposure to CLOs in their portfolios, highlighting the strength of the asset class so far in 2024.
Overall, the Creditflux database saw an optimistic start to the year as 92% of performers made positive returns in January, while almost 33% of funds pushed above 2%.
Lupus Alpha and Crystal Funds managed to retain their positions at the top, as the two managers pushed above 6% in January, taking their figures over the past 12 months to 42.65% and 37.99%, respectively.
Leading fund
Lupus Alpha CLO Opportunity Notes II
Frankfurt-based Lupus Alpha had a stellar start to the year, as two of its funds reached 6.37% and 6.23%. This is the continuation of a three-month streak for both funds, with Opportunity Notes I reaching 15.06%, and Opportunity Notes II reaching 18.72% over the period.
Michael Hombach, portfolio manager at Lupus Alpha, said: “As spreads tightened by around 100bps on single Bs, this had a material impact on the fund through its junior mezzanine positions.”
He also said that returns were boosted by equity payments in January, by “investments de-levering out of reinvestment dates”, and by the fund’s market value increasing during the January rally, pushing loan prices and NAV higher.
He added: “While this has nearly played out, we can look to reinvesting in junior mezz and keeping the coupon going.”
Top credit funds in January (%)
Lupus Alpha CLO Opportunity Notes II vs CLO cumulative returns (%)
*Data since fund inception (Aug-23)
**Estimates
For hedge fund listing notes see here
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