Key Takeaways
- • Legg Mason Global Asset Management has launched the Permal Hedge Strategies Fund, a fixed income-focused multi-manager, multi-strategy fund of hedge funds aimed at the retail market.
- • The fund is structured as a publicly traded offering, adding liquidity and transparency to Permal's existing fund-of-hedge-funds product range.
- • Portfolio allocation spans developed and emerging market fixed income, long/short fixed income, and smaller positions in event-driven and global macro strategies intended to mitigate volatility.
- • Portfolio manager Javier Dyer expects corporate restructurings and distressed credit opportunities to increase through 2012, citing late-stage bankruptcy situations offering attractive IRRs.
- • Legg Mason's Matt Schiffman frames the launch as a response to market volatility and investor demand for lower-risk, lower-correlated alternative strategies.
Summary
Legg Mason Global Asset Management has launched the Permal Hedge Strategies Fund, a fixed income-focused multi-manager, multi-strategy fund of hedge funds, according to Hedgeweek. The vehicle is designed to give retail investors access to Permal's fund-of-hedge-funds expertise, with Permal described as one of the oldest fund-of-hedge-funds managers in the industry.
The fund uses flexible asset allocation, moving capital between credit and non-credit strategies. Its underlying exposures include developed and emerging market fixed income and long/short fixed income. Smaller allocations target event-driven strategies such as risk arbitrage, distressed debt, special situations and activist investing, alongside global macro strategies, both systematic and discretionary, which are intended to dampen market volatility.
Matt Schiffman, Head of Global Marketing for Legg Mason, said the product responds to heightened market volatility and investor demand for lower-risk, lower-correlated alternative strategies. He described the fund as built to extend Permal's existing product range with greater liquidity and transparency through a publicly traded structure.
Javier Dyer, Portfolio Manager of the Permal Hedge Strategies Fund and Permal Group Deputy Chief Investment Officer, said he expects corporate activity to increase throughout 2012. He pointed to corporate restructurings, both inside and outside of bankruptcy, and distressed credit opportunities, noting that late-stage bankruptcy situations currently offer attractive IRRs in what are effectively liquidation situations.
The launch is part of Legg Mason's broader fixed income push, which the publisher's related coverage places alongside other fixed income vehicles from its subsidiaries. The primary source does not disclose fund size, fee structure, or minimum investment.
The fund uses flexible asset allocation, moving capital between credit and non-credit strategies. Its underlying exposures include developed and emerging market fixed income and long/short fixed income. Smaller allocations target event-driven strategies such as risk arbitrage, distressed debt, special situations and activist investing, alongside global macro strategies, both systematic and discretionary, which are intended to dampen market volatility.
Matt Schiffman, Head of Global Marketing for Legg Mason, said the product responds to heightened market volatility and investor demand for lower-risk, lower-correlated alternative strategies. He described the fund as built to extend Permal's existing product range with greater liquidity and transparency through a publicly traded structure.
Javier Dyer, Portfolio Manager of the Permal Hedge Strategies Fund and Permal Group Deputy Chief Investment Officer, said he expects corporate activity to increase throughout 2012. He pointed to corporate restructurings, both inside and outside of bankruptcy, and distressed credit opportunities, noting that late-stage bankruptcy situations currently offer attractive IRRs in what are effectively liquidation situations.
The launch is part of Legg Mason's broader fixed income push, which the publisher's related coverage places alongside other fixed income vehicles from its subsidiaries. The primary source does not disclose fund size, fee structure, or minimum investment.
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