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March 2022 | Issue 243
Data
funds
Fund performance
Fund performance
Groundhog Day as 2021 leaders start strong
CLO funds once again claim the most top performing spots as seven out of 10 funds belong to the category. This continues their strong run in 2021 where the category achieved 14.84% according to Creditflux indices.
Creditflux index returns January (%)
In a re-run of last year, two of the funds leading in 2022 are Wasserstein Debt Opportunities Fund and Lupus Alpha CLO Opportunity Notes II, which made 2.00% and 2.37% respectively in January. These funds gained 52.95% and 36.30% respectively last year.
Overall, January fund performance was positive, as 56% of funds reached a positive return. However, this is down 20% on positive returns seen in December. And January gains were muted as only 19% of funds pushed above the 1% mark.
Ayaltis and Altum both entered the top 10 representing the credit funds of funds and structured finance categories, achieving 2.25% and 1.96% respectively.
Leading fund
Flat Rock Opportunity Fund
New York-based Flat Rock Global took the top spot in January as its Flat Rock Opportunity Fund made 3.74%. This took the fund’s last 12-month figure to 21.92% and annualised returns since inception to 14.90%.
The fund’s investment strategy primarily focuses on the equity and junior debt tranches of US cashflow CLOs, with a preference for mid-market CLOs.
Shiloh Bates, managing director at Flat Rock, says: “The fund continued to benefit from a low default rate on the underlying loans in our CLOs and an open market to reset and refi our existing positions.”
The fund came ninth in our credit hedge fund table for 2021, as it posted 24.14% returns and was previously a winner of the Creditflux Best CLO Fund Award for its returns in 2019, and a finalist the following year.
Top credit funds in January (%)
Flat Rock Opportunity Fund vs CLOs cumulative returns (%)
*Data since fund inception (July-18)
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Global credit funds & CLO's
March 2022 | Issue 243
Published in London & New York.
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