Top Hedge Fund News, Member Posts, Hedge Fund Daily Indices and more!

3yrs ago Hedge Fund hedgeweek Views: 395

Altana’s specialist credit strategy eyes short duration alpha plays after Q2 rebound

Submitted By Hugh Leask | 23/07/2020 - 5:06pm -

Altana Wealth, the credit, currency and special situations-focused hedge fund led by former Trafalgar Asset Managers co-founder Lee Robinson, believes its specialist corporate bond strategy is well placed to generate further gains following a strong second quarter performance.

The firm’s Altana Corporate Bond Fund – which trades a range of short-duration investment grade and opportunistic high-yield and event driven credit themes globally – made 2.5 per cent in June, and rose more than 9 per cent overall during Q2.

The gains partly eased sharp losses suffered during the Q1 sell-off. But the fund’s USD share class was still down more than 7 per cent in the first six months of 2020.

In a flash update this week, Altana said that with interest rates remaining at or below zero, the ABCF’s short-duration profile and alpha-focused credit selections - coupled with credit hedge overlays to curb volatility - puts it in good stead compared to other index or high-beta, longer-duration funds.

“Over the coming months, we remain confident that we can rebuild investors’ capital to the all-time peak seen earlier this year,” the firm wrote.

Noting how the ABCF is negatively correlated to long-dated US treasuries, Altana said that long-term rates will eventually rise, observing that most other bond funds which posted positive performance in 2020 have done so on the back of falling rates.

“An increase in debt taken on by many corporates may lead to greater risk in the future due to potentially unsustainable debt structures. So investing in short duration credit should be safer.”

The Altana Corporate Bond Fund is run by portfolio manager Philip Crate alongside Altana founder and CIO Robinson, with a USD300 million capacity.

“Investors should avoid falling into the trap of believing that the recent strong performance of investment grade bond funds will continue,” the note said.

“Switching to shorter duration bond funds mitigates risk with the likelihood of similar if not better returns in the coming year.”

Altana added: “Investors require yield, especially above inflation. That can be achieved with very long duration investment grade credit with consequential downside risk. Or, more effectively, finding the alpha in short duration bonds by employing considered credit selection techniques.”

Altana Wealth was established in 2010 by Lee Robinson, the well-known veteran co-founder of event driven hedge fund Trafalgar Asset Managers, who earlier helped build Tudor Investment Corp’s risk arbitrage business.

Initially set up to manage Robinson’s personal wealth, Altana – which has offices in London and Monaco - was later opened to external investors. Today it manages an assortment of strategies spanning credit, currencies, cryptocurrencies, and special situations.

Tags Funds Results & performance Funds

Today's Hedge Fund Headlines:

Log In for More
Access Over 250K+ Industry Headlines, Posts and Updates
Not a member yet?

Join AlphaMaven

The Premier Alternative Investment
Research and Due Diligence Platform for Investors

Free Membership for Qualified Investors and Industry Participants
  • Easily Customize Content to Match Your Investment Preferences
  • Breaking News 24/7/365
  • Daily Newsletter & Indices
  • Alternative Investment Listings & LeaderBoards
  • Industry Research, Due Diligence, Videos, Webinars, Events, Press Releases, Market Commentary, Newsletters, Fact Sheets, Presentations, Investment Mandates, Video PitchBooks & More!
  • Company Directory
  • Contact Directory
  • Member Posts & Publications
  • Alpha University Video Series to Expand Investor Knowledge
  • AUM Accelerator Program (designed for investment managers)
  • Over 450K+ Industry Headlines, Posts and Updates
ALL ALPHAMAVEN CONTENT IS FOR INFORMATIONAL PURPOSES ONLY. CONTENT POSTED BY MEMBERS DOES NOT NECESSARILY REFLECT THE OPINION OR BELIEFS OF ALPHAMAVEN AND HAS NOT ALWAYS BEEN INDEPENDENTLY VERIFIED BY ALPHAMAVEN. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THIS IS NOT A SOLICITATION FOR INVESTMENT. THE MATERIAL PROVIDED HEREIN IS FOR INFORMATIONAL PURPOSES ONLY. IT DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY INTERESTS OF ANY FUND OR ANY OTHER SECURITIES. ANY SUCH OFFERINGS CAN BE MADE ONLY IN ACCORDANCE WITH THE TERMS AND CONDITIONS SET FORTH IN THE INVESTMENT'S PRIVATE PLACEMENT MEMORANDUM. PRIOR TO INVESTING, INVESTORS ARE STRONGLY URGED TO REVIEW CAREFULLY THE PRIVATE PLACEMENT MEMORANDUM (INCLUDING THE RISK FACTORS DESCRIBED THEREIN), THE LIMITED PARTNERSHIP AGREEMENT AND THE SUBSCRIPTION DOCUMENTS, TO ASK SUCH QUESTIONS OF THE INVESTMENT MANAGER AS THEY DEEM APPROPRIATE, AND TO DISCUSS ANY PROSPECTIVE INVESTMENT IN THE FUND WITH THEIR LEGAL AND TAX ADVISERS IN ORDER TO MAKE AN INDEPENDENT DETERMINATION OF THE SUITABILITY AND CONSEQUENCES OF AN INVESTMENT.