Fund performance

Good month for CLO funds sees six in top 10 as Axiom sets pace

May saw a dip in credit fund performance compared with April, with only 73% of funds posting positive returns. In a continuation of a trend from April, six CLO funds remain in our top 10.

Creditflux index returns May (%)

Alegra, Accunia and Fair Oaks were joined by fellow European-based CLO fund manager Lupus Alpha — each returned over 1.7% for May. Crystal Fund also returned to the list, albeit with a different fund (IV over VII), which made 2.49% in the month and pushed its YTD figure to 9.25%.

It was a positive month for European managers generally, as Robus and ICG entered the top 10 with their European high yield strategies hitting 2.94% and 1.80%, respectively. Parisian firm Hellebore also made the list, with its credit multi-strategy fund making a 3.76% return.

Capital Four Structured Credit Opportunities Fund now claims the highest performance over the past 12 months, with a 24.71% return.

Leading fund

Axiom Credit Opportunity

Axiom claimed prize position in May as its corporate long-short fund, Axiom Credit Opportunity, reached a 4.25% return. The Paris-based firm continues its good form as the fund retains the top spot for a third month in a row, putting its YTD figure at 20.63%.

Axiom’s monthly report states: “The fund benefited from the main position with spread and dispersion decreasing, especially on the short end of the curve, and from the crossover defensive positioning as Casino continued to widen.

“With the sense that conviction levels are low, news on debt ceiling relief and financials caused generically small reactions in macro credit as volatility was low and credit spreads remained rangebound.

“In the US, the debt ceiling has been raised until 2025, sending a positive message about the situation of the US Treasury. In Europe, despite a slight drop in inflation figures, the consensus still foresees two successive increases of 25 bps in key rates.”

Top credit funds in May (%)

Axiom Credit Opportunity vs corporate long-short cumulative returns (%)

*Data since fund inception (Dec-2018)

See hedge fund listing notes

**Estimates

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Global credit funds & CLO's

July 2023 | Issue 256

Published in London & New York.