Fund performance

Rocky May piles on the misery for credit hedge funds

Negative fund performance soared in May, as 82% of funds listed failed to reach the black. This is an increase on the 60% of negative funds we saw the previous month and the third month in a row where credit funds have made losses. Despite a tough month, funds from six different categories helped diversify our ranking of the top 10 credit hedge funds in May.

Creditflux index returns May (%)

Three CLO funds made appearances, with Crystal, CIS and Prospect making 2.59%, 1.91% and 1.43% respectively. BK Opportunities Fund IV and CLO Alpha Compartment Taunus become the top performers so far in 2022, making 9.24% and 27.56% respectively.

LCC Latam Consumer Credit joins the May top performer list, representing emerging markets alongside Marathon Asset Management. LCC made 1.10%, pushing its year-to-date figure to 6.44% and helping the emerging markets index to end May almost flat at -0.07%

Leading fund

Marathon Global Emerging Markets Fund

New York-headquartered Marathon Asset Management took the top spot in May as Marathon Global Emerging Markets Fund hit 3.94%, on an estimated basis. This helped pull the year-to-date figure up to -12.47%.

The fund employs value-based fundamental analysis and looks at the macroeconomic backdrop to evaluate and capitalise on attractive risk/reward opportunities.

The opportunistic fund focuses on global emerging markets across Latin America, eastern Europe, Asia, Africa and the middle east. It seeks attractive absolute returns through a combination of opportunistic trading and value-based investing strategies. Marathon was established in 2003 and has about $23 billion under management. Gabriel Szpigiel heads the emerging market business.

Top credit funds in May (%)

Marathon Global Emerging Markets Fund vs Emerging Markets total returns(%)

*Data since fund inception (January-14)

See hedge fund listing notes

**Estimates

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Global credit funds & CLO's

July 2022 | Issue 247

Published in London & New York.