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June 2022 | Issue 246

Fund performance

Credit hits another bump in the road after March revival
There was more upheaval for credit funds in April, reversing the mini-recovery in March as 40% of funds made positive returns, a decrease on the 47% in March. Four different categories were represented in the top 10 this month, however eight of the funds were either structured finance or CLO focused vehicles.
Creditflux index returns April (%)
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Lupus Alpha led the way for CLO funds as both CLO Opportunity Notes I and II had good months, returning 4.65% and 5.50%, respectively. Flat Rock, Napier Park and CIFC all followed suit making 2.19%, 2.03% and 1.78%, respectively. This marks the second month in a row Napier Park makes the top 10, helping to push its 2022 figure to 5.60% and fourth place overall.
At the time of publishing, BK Opportunities Fund IV leads the year-to-date standings with 6.49% after a 0.54% return in April. Hellebore Credit Multi-Strategy and Acer Tree Funds follow, with 6.00% and 5.90%, respectively.
Leading fund
Mahogany Credit Fund
Global investment manager Diamond Capital took the top spot in April as Mahogany Credit Fund returned 8.81%.
Bennett Lim, portfolio manager at Diamond, says: “Mahogany’s April returns were primarily driven by a rebound in the fund’s energy exposure, which benefited from expectations that oil prices will remain elevated in the near to mid-term.”
The fund has had a tough last 12-months as it has lost 48.64% since May 2021. According to the factsheet, it “expects to primarily invest its assets in special opportunities in different industry sectors on an opportunistic basis in both developed and emerging markets in companies of any size.” There is also a focus on identifying “significantly undervalued fixed income securities that have been overlooked because they are in distress.”
Top credit funds in April (%)
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Mahogany Credit Fund vs structured finance cumulative returns (%)
*Data since fund inception (November-12)
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Global credit funds & CLO's
June 2022 | Issue 246
Published in London & New York.
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