WHEN BLUE MOUNTAIN chief executive Andrew Feldstein wrote to investors in the firm’s Credit Alternatives Fund on November 3 informing them of his redemption and recapitalization plan for the $3.1 billion fund, it was a clear sign that the difficulties faced by credit fund managers had reached a new intensity. The Blue Mountain Credit Alternatives fund is one of the largest and most successful credit hedge funds in the market, having returned 17.4% in 2006 and 8.8% in 2007. But on October 31, the fund was down 2.4% year to date. Feldstein wrote that he was moved to take action on redemptions from the fund, despite "both our distinguished performance through the credit crisis and some of the best investment opportunities we’ve ever seen".
All investors in the fund were given the stark choice of redeeming their existing investment or exchanging it...
You must be a subscriber to access this archived content.
If your subscription includes access to the archive, please log in now to view.
To gain access to this content visit the subscription page or call our hotline on +44 (0)207 779 8999.
Subscribe online now and save up to 30% on your subscription.
If you are a trialist or subscriber, please enter your username and password at the top right-hand side of euromoney.com
Subscribers to Euromoney benefit from:
- 12 months access in print and online - on euromoney.com, read the latest issue early online, search for specific developments by region or sector, interrogate the results of Euromoney's benchmark polls, and view the archive dating back to 1996
- More than 30 specialist research guides free
- The results of Euromoney’s polls and surveys
- Tailored RSS news feeds direct to your desktop
- News delivered directly to your mobile device or PC
- Personalised email newsfeed of 'Top stories' and 'Breaking news'
Click here to subscribe