September 2021 | Issue 238

Fund performance

CLOs dominate again as CIFC and Hildene score hat-tricks
CLO funds once again take over the top 10 as seven of those listed with Creditflux invest predominantly in the asset class. So far in 2021, CLO funds have held a majority of the spots in the top 10 on four occasions.
Creditflux index returns July (%)
73% of funds this month made positive returns, compared to 91% in June. Of those in the positive, one-fifth managed to push the 1% barrier. Hildene Credit Fund and CIFC CLO Opportunity Fund II are among the best performers for the third month in a row, with Hildene this time claiming the top spot.
Wasserstein Debt Opportunities Fund remains the top performing fund of 2021 despite Lupus Alpha gaining on the US high yield fund; the funds have achieved 33.82% and 30.97% year-to-date respectively.
Outside of the CLO fund category, Angel Oak’s structured finance fund pushed its YTD figure to 8.86%; Finanz Konzept moved up to 2.85% YTD and Hildene’s multi-strategy credit fund climbed to 16.03%.
Leading fund
Hildene Credit Fund
Stamford-based Hildene Capital Management landed the top spot in July as Hildene Credit Fund returned 3.45% estimated. This pushed the fund’s year-to-date figure up to 26.05% (third overall in the Creditflux hedge fund tables).
Dushyant Mehra, co-chief investment officer at Hildene says: “We view CLO tranche values as being derived from a combination of the value of underlying collateral, and the value of excess spread, leverage and embedded call options. We believe most of the market focuses on the asset value, while we determine security selection by the value of the structure and any mispriced embedded options. The generic reset/refi market continues to misprice or ignore these nuances, where we have been able to extract value by amending the structure and renegotiating deal terms.”
Top credit funds in July (%)
Hildene Credit Fund vs CLOs cumulative returns (%)
*Data since fund inception (May-20)
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Global credit funds & CLO's
September 2021 | Issue 238
Published in London & New York.
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