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Data Funds
Fund performance
Prytania grabs gold; Spire and Sound Point take silver and bronze
As the second quarter ended and summer arrived, fund returns showed slight signs of slowing, with 84% of funds in the Creditflux rankings making positive returns in June. This marks the second lowest number of funds reaching the black in 2024; only April was lower, at 78%.
As has become usual this year, CLO funds made up the majority of the top 10. Two credit multi-strategy and two corporate long-short funds filled out the ranking.
Lupus Alpha remains atop the table for fund returns in the past 12 months. The firm’s CLO funds reached 43.90% and 36.42%, due in-part to their strong performances in 2H2023.
Looking at the 2024 leaderboard, Spire spent a second month in the silver medal position, with only 0.00006% separating it from current leader Alegra. Who said credit funds can’t be as exciting as the Olympics?
Creditflux index returns June (%)
Leading fund
Plutus CLO Fund
London-based Prytania Investment Advisors took the top spot in June, as Plutus CLO Fund made 2.78%, pushing its year-to-date figure to 14.44%.
Alexander Young, an investment analyst with the firm, said: “We continue to observe heightened appetite in CLOs, with investors attracted by the floating rate component... [as well as] compelling carry and headline yields. This strong investor demand has led to a tightening of spreads across the board, despite an increase in new CLO issuance.”
Young added that, while fundamentals have been robust this year, he is aware of the potential onset of financial contagion related to wider macro risks. Consequently, the firm has shifted the portfolio strategy towards shorter term CLOs from liquid, established managers.
He says this strategy is supported by the tightening of the new issue premium (which is down from 25bps to 12bps year-to-date), and also by a decrease in manager dispersion in IG rated debt.
Top credit funds in June (%)
Plutus CLO Fund vs CLO index (%)
*Data since fund inception (September 2020)
**Estimates
See hedge fund listing notes
