May 2021 | Issue 234
Fund performance
Lightning strikes twice as range of credit funds deliver
What seemed like a chance occurrence in February has struck again in March, as seven categories make our top 10 best performing hedge funds.
Creditflux index returns March (%)
CLO Alpha Compartment Taunus is joined at the top by Finanz Konzept’s Triple Opportunity Fixed Income Fund with 4.87%, which marks a turnaround on the last few months and pulls year-to-date returns to 4.64%. It is closely followed by Wasserstein, which has had an exceptional start to the year through its US high yield fund which is up 32.35% over the first quarter.
Serone and Angelo Gordon are corporate distressed funds in the top 10, while Lupus Alpha has pushed into the top place for performance based on the last 12 months having gained a whopping 144.39%. The fund is one among four from Lupus Alpha and Alegra whose 12-month returns have pushed past 100%, underlining the recovery following the covid crisis last March.
Leading fund
CLO Alpha Compartment Taunus
CIS Asset Management took first place in March as its CLO Alpha Compartment Taunus returned 7.36%. This pushed the fund to third place in YTD performance with 13.96%. Annualised returns since inception have now reached 23.34%.
The firm focuses on niche CLO equity with an emphasis on US CLOs. Divya Vamadevan, managing director at CIS Asset Management, says: “The fund received the initial payments for CLOs invested in during the covid volatility period in the first half of last year. The returns were in the low double-digit range as CLO managers were able to build par. Taunus maintains an above market average OC cushion close to 5%, alongside no defaulted assets in this compartment. Moreover, Taunus was able to make use of the historically low CLO cost of funding and invested in CLO equity in the previous quarter.”
Top performers in March (%)
CLO Alpha Compartment Taunus vs CLOs cumulative returns (%)
*Data since fund inception (September-19)
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Global credit funds & CLO's
May 2021 | Issue 234
Published in London & New York.
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