Key Takeaways
- • Kirkoswald Asset Management, a London-based firm managing approximately $20 billion in assets, is launching a dedicated emerging markets credit hedge fund expected to commence trading in 2026.
- • The new fund will be spun out from an existing Kirkoswald strategy and will employ a directional approach targeting high-yield sovereign debt opportunities in emerging markets.
- • Giorgio Lombardo will lead the new vehicle, heading a team formerly at Emso Asset Management, while founder Greg Coffey will not be directly involved in the fund's management.
- • The launch reflects sustained institutional investor appetite for alternative investment strategies within the emerging markets space, supporting expansion among established hedge fund managers.
Summary
Kirkoswald Asset Management is expanding its product suite with a new hedge fund dedicated to emerging markets credit, according to Bloomberg reporting citing unnamed sources familiar with the firm's plans. The London-based asset manager, which currently oversees approximately $20 billion, is extracting an emerging markets credit strategy from one of its existing funds to create the standalone vehicle, which is expected to begin trading in 2026.
The new fund will pursue a more directional investment strategy, with a specific focus on identifying opportunities within high-yield sovereign debt markets across emerging economies. This approach represents a targeted positioning within the broader emerging markets investment universe, where sovereigns offer distinct risk-return dynamics compared to corporate credit instruments.
Management of the fund will be led by Giorgio Lombardo and his team, both formerly of Emso Asset Management. Notably, Kirkoswald founder Greg Coffey—who built the firm's reputation through macro and emerging markets investing expertise—will not assume a direct management role in the new fund, signaling a delegation of responsibility to the incoming leadership team while Coffey potentially focuses on broader strategic and investment oversight at the parent organization.
The launch underscores continued institutional demand for alternative investment vehicles in emerging markets credit, a sector that has attracted significant capital flows as investors seek yield and diversification. Kirkoswald's expansion follows a period of sustained growth among major hedge fund managers launching specialized strategies. The firm declined to comment on the announcement to Bloomberg.
The new fund will pursue a more directional investment strategy, with a specific focus on identifying opportunities within high-yield sovereign debt markets across emerging economies. This approach represents a targeted positioning within the broader emerging markets investment universe, where sovereigns offer distinct risk-return dynamics compared to corporate credit instruments.
Management of the fund will be led by Giorgio Lombardo and his team, both formerly of Emso Asset Management. Notably, Kirkoswald founder Greg Coffey—who built the firm's reputation through macro and emerging markets investing expertise—will not assume a direct management role in the new fund, signaling a delegation of responsibility to the incoming leadership team while Coffey potentially focuses on broader strategic and investment oversight at the parent organization.
The launch underscores continued institutional demand for alternative investment vehicles in emerging markets credit, a sector that has attracted significant capital flows as investors seek yield and diversification. Kirkoswald's expansion follows a period of sustained growth among major hedge fund managers launching specialized strategies. The firm declined to comment on the announcement to Bloomberg.
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