August 2021 | Issue 237

Fund performance

Long-short funds challenge CLO strategies
CLO funds are maintaining their stranglehold on our top 10, but long-short credit funds are giving them a run for their money. Four CLO funds and three corporate long-short funds were vying with each other at the top of the performance tables.
Creditflux index returns June (%)
The end of Q2 was highlighted by a significant optimism as 91% of funds made positive returns, while a quarter of funds pushed above 1% returns.
Hildene Credit Fund and CIFC CLO Opportunity Fund III took second and third place in June with 3.84% and 2.96% respectively, pulling their 2021 figures to 21.62% and 10.57%, respectively. This also puts Hildene in third place for YTD figures, behind the unchanged first and second Wasserstein and Lupus Alpha at 35.41% and 27.50%, respectively.
Acer Tree, Robus and Arena also had bright months as they brought their YTD figures up to 13.66%, 3.98% and 9.58% respectively.
Leading fund
Triple Opportunity Fixed Income Fund
Zurich-based Finanz Konzept took first place in June as its Triple Opportunity Fixed Income Fund returned 4.61%. This has pulled the fund’s year-to-date figure up to 1.35% despite a rocky start to 2021.
Jeremy Blaser, portfolio manager at the firm says: “since the start of the pandemic, we have stuck to a very conservative strategy. The last few months have been challenging with this focus, but now the strategy is paying off. The long-term JPY government bonds as well as the leveraged short position on EUR/USD have contributed significantly to the performance.”
“We also saw out-performance the following month due to increasing growth fears in the market. We will continuously take profits and in return build up short positions in the Bund Future to protect against sustained high inflation.”
Top credit funds in June (%)
Triple Opportunity Fixed Income Fund vs Corporate long-short cumulative returns (%)
*Data since fund inception (June-11)
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Global credit funds & CLO's
August 2021 | Issue 237
Published in London & New York.
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