Hedge Fund Capital Management ("HFCM") announces the launch of their Credit Opportunities fund of funds
Zurich based HFCM is launching a Credit Opportunities fund of hedge funds, designed specifically to take advantage of the major dislocations that have taken place in credit markets in recent months.
Iain Hamilton, Portfolio Manager of the new fund explained:
"Significantly reduced liquidity and the effects of deleveraging in the financial markets have led to dramatic declines in asset prices. Corporate and MBS/ABS securities are priced at historically low levels, in many cases discounting default rates rising to and remaining at levels significantly above anything seen in the past 50 years.
Managers who have been able to avoid liquidating positions are now holding heavily marked down assets which have the potential to deliver attractive performance through the significant coupon / loss adjusted yields (carry) and capital appreciation (pull to par) available at the moment on these "frozen" illiquid investments.
We see an immediate opportunity, similar to that exploited by investors in the aftermath of the S&L crisis of the early 1990â??s and following the corporate defaults of the early 2000â??s".
The fund will focus initially on two main sectors, namely:
Corporate Debt markets (predominantly 1lien loan and Credit Long / Short managers) impacted by the financial sector freeze on lending and global liquidity crisis.Securitized Debt markets (predominantly MBS/ABS managers) which have suffered due to the subprime mortgage debacle and global liquidity crisis.
The fund will target a 15% annualized net return with acceptable volatility over a two year time period through the construction and management of a diversified portfolio of funds, focusing on the above areas of the investment markets.
Hedge Fund Capital Management AG is an independent, Zurich based investment advisory company specialising in advising portfolios of hedge funds. HFCMâ??s highly experienced team of investment professionals brings together the portfolio management, analytical and administrative skills necessary to provide first class levels of investment performance and client service. HFCM currently advises a range of diversified fund of hedge fund portfolios for institutional and sophisticated private investors and is actively developing new products to take advantage of the outstanding market opportunities ahead.
For further information please contact: info@hfmkt.com
The press release contains a number of forward looking statement and forecasts. HFCM AG does not make any assurances concerning its ability to achieve the expected performance. This announcement is for information purposes only and does not constitute a recommendation or an offer to sell, or the solicitation of an offer to buy any shares in any product nor does it constitute any advice or recommendation in relation to investing in any product and each investor must determine (on its own or through independent professional advice) the suitability for them of investing. The Fund and this document is not for distribution to retail customers and no action has been made or will be taken that would permit a public offering of the Fund in any jurisdiction.
Zurich 03.11.08
