October 2021 | Issue 239

Fund performance

CLOs lead but variety is the spice of life
An assortment of funds have made their mark in August as five different strategies make it into our top 10 for the month. Once again CLO funds are the most well represented, with four funds across three managers. Crystal Funds BK Opportunities IV leads this pack at 2.51%, whilst Flat Rock Opportunity Fund has breached the 20% mark this year after registering a 1.79% gain in the month.
Creditflux index returns August (%)
Overall fund performance improved as 88% of funds made positive returns, compared to 73% in July. Continuing the trend from last month, one-fifth of funds again pushed the 1% barrier. A strong month for Sandalwood resulted in two of its four funds making the top 10, as Oxbridge took the number one spot and Bodleian Partners B returned 1.82%, pushing the credit fund of funds to 10.2% year-to-date..
The gap at the top of YTD returns has also closed; Wasserstein still leads with 34.81% but Lupus Alpha sits at 32.43% - only 2.38% behind. The Lupus Alpha CLO fund has been one of the most consistent performers this year, regularly making it in the top 10.
Leading fund
Oxbridge Partners
New Jersey-based Sandalwood Securities secured the top spot in August as Oxbridge Partners returned 2.93%. This pushed the fund’s YTD figure up to 10.15% and annualised return since inception (in 1992) to 8.29%.
Rick Stockton, managing director of investor relations at Sandalwood, said: “We typically don’t focus on a single month’s return, because we are in this for long-term success rather than month-to-month outperformance. However, the managers in this portfolio tend to be less correlated to the markets.”
“While it’s nice to see a strong month, the goal of our portfolio is to allow our investment partners to continue compounding their assets with lower correlation and lower volatility when compared to investing directionally in the markets.”
Top credit funds in August (%)
Oxbridge Partners vs credit funds of funds cumulative returns (%)
*Returns from last 10 years
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Global credit funds & CLO's
October 2021 | Issue 239
Published in London & New York.
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