July 2021 | Issue 236
Fund performance
Déjà vu as April leaders dominate
CLO funds stayed in the top flight for another month as they took over the top 10 credit hedge fund return table in May, when 87% of all funds listed made positive returns.
Creditflux index returns May (%)
Three non-CLO funds took the remaining spots. Corporate long-short fund Millstreet Credit Fund and corporate distressed fund Serone European Special Situations Fund made matching 2.14% returns, while structured finance fund III Credit Opportunities delivered 2.12%. This also marks repeat appearances for the latter two, which made 4.73% and 3.61% in the April top 10 table.
Another three funds returned to the top 10 in May, including CIFC CLO Opportunity Fund II, BK Opportunities Fund VI and Vibrant Sente Fund. The trio of CLO funds made 3.02%, 2.23% and 2.20%, respectively, pushing BK Opportunities Fund VI to 20.63% year-to-date.
Wasserstein Debt Opportunities continues to lead the 2021 year-to-date race at 33.60%. However, Lupus Alpha CLO Opportunity Notes II and BK Opportunities Fund VI look to catch up, at 24.84% and 20.63%, respectively.
Leading fund
Flat Rock Opportunity Fund
New York-headquartered Flat Rock Global held first place in May as Flat Rock Opportunity Fund returned 3.70%. The fund, launched in July 2018 as an interval fund, now sits at 13.53% year-to-date and 13.59% annualised returns since inception.
Shiloh Bates, managing director at Flat Rock, says: “Our loan investments performed well and we saw one material right up in a lower dollar priced investment during the month.” The fund’s investment strategy focuses primarily on the equity and, to a lesser extent, junior debt tranches of cashflow CLOs.
Flat Rock Opportunity Fund is also the most recent winner of the Creditflux ‘Best CLO Fund’ award. The fund was rewarded after it returned 13.21% cumulatively in 2019, only dropping into the negative once that year.
Top credit funds in May (%)
Flat Rock Opportunity Fund vs CLOs Cumulative returns (%)
*Data since fund inception (July-2018)
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Global credit funds & CLO's
July 2021 | Issue 236
Published in London & New York.
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