BlueBay launches alternative credit fund for end of QE

Bonds_newspaperBlueBay Asset Management has launched an alternative credit fund providing access to the firm’s best ideas in long/short bonds.

The BlueBay Diversified Alternative Credit Fund has been seeded with $90 million and was launched in response to client demand, BlueBay said.

Underlying portfolio managers will invest the Ireland-domiciled fund in strategies such as event-driven and emerging markets alpha so that the fund can target a net annualised return of 8% over cash.

BlueBay said the combination of strategies was best placed to “capture the changing opportunity set in global risk markets including divergent monetary policy, the rise of illiquidity premiums, greater bond dispersion and increased market stress”.

The strategies had been combined for a balance of return and volatility while covering a wide universe to maximise the opportunity set within bond markets, BlueBay said.

Blair Reid, senior portfolio manager at BlueBay, said markets were at an “inflection point” as the world  transitioned from an era of quantitative easing to a period of quantitative tightening, coupled with a progression in the credit cycle.

“With the onset of increased volatility a flexible, unconstrained approach to credit selection orientated strategies is the best way to capture alpha opportunities.”

The fund offers monthly subscriptions, with quarterly redemptions.

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