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Data Funds
Fund performance
Corporate distressed stays positive as other categories take a dive
After posting the weakest sector performance in February, with an average return of only 0.15%, corporate distressed funds were the top performers among Creditflux’s index returns in March.
Although they returned an average of 0.24% — buoyed by a survey-leading performance from Pictet Alt’s Distressed & Special Situations Fund — it was enough to outperform every other sector, each of which averaged negative returns in a challenging environment.
Some 73% of funds delivered negative returns for the month, including all US and European high yield funds tracked by Creditflux.
Year-to-date, the leading fund is Prytania’s Athena Fund, with a cumulative return for the first three months of 7.66%. It’s followed by the Robus Mid-Market Value Bond Fund, and Acer Tree IM’s corporate long-short offering, Acer Tree Funds.
Creditflux index returns March (%)
Leading fund
Pictet Alt — Distressed & Special Situations
A corporate distressed strategy from Pictet Alternative Investments claimed the top-performing fund mantle in March.
The firm’s Distressed & Special Situations Fund returned 2.30% for the month, edging out a strong performance from Robus’ Mid-Market Value Bond Fund, which added 2.25%.
Launched in December 2019, Pictet’s offering has had a strong start to 2025, with a cumulative 4.20% return year-to-date.
The fund has delivered an annualised return since inception of 9.11%, and 6.99% over the past 12 months.
According to Gareth Payne, head of credit client portfolio management at Pictet, the performance was driven by relative value and short exposures, with successful positioning in energy, materials and real estate.
“This environment provides plentiful opportunities for our bottom-up selection,” he said. “Nimble positioning and tactical trading continue to be key in generating alpha.”
Top credit funds in March (%)
Pictet Alt Distressed & Special Situations vs corporate distressed cumulative returns (%)
**Estimates
See hedge fund listing notes
