November 2021 | Issue 240

Fund performance

Dominant CLO funds look to end the year with 20%-plus gains
Once again the Creditflux hedge fund top 10 is dominated by CLO funds, with seven funds among the best performers in September. Oxford Gate Master Fund leads with 3.05%, pushing its year-to-date to 24.72% and moving up to fourth overall for 2021 returns. Still occupying the top three spots for the year are BK Opportunities Fund VI at 26.59% YTD, Lupus Alpha CLO Opportunity Notes II at 34.70% and this month’s top performer Wasserstein Debt Opportunities Fund at 40.74%.
Creditflux index returns September (%)
Overall, funds performed slightly worse than the previous month as 79% made positive returns, compared to 88% in August. For the third month in a row, roughly one-fifth of funds pushed over the 1% mark.
Pictet Alt – Distressed & Special Situations stands out among the top 10 with its return of 3.59%. It focuses on investments in securities and loans from issuers which have failed to make scheduled payments or are in, or near, bankruptcy.
Leading fund
Wasserstein Debt Opportunities Fund
New York-based Wasserstein Debt Opportunities Management took first place in September as Wasserstein Debt Opportunities Fund returned 4.40%. This solidified the fund’s position as top performer in 2021 as it hit 40.74% YTD and increased its annualised return since inception to 11.75%.
Founder and chief investment officer Rajay Bagaria says: “we focus on less transparent, price inefficient market segments where active management matters. 2021 performance has been driven by the full toolkit — credit selection, low-price sourcing, exposure management and position sizing.”
The fund started 2021 with a bang as it hit 21.70% in January. “Our focus now is on downside protection, floating-rate exposure and idiosyncratic situations with more dislocation potential.”
Top performers in September (%)
Wasserstein Debt Opportunities Fund vs US high yield cumulative returns (%)
*Data since fund inception (May-13)
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Global credit funds & CLO's
November 2021 | Issue 240
Published in London & New York.
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