As credit hedge funds increasingly stall, the distressed markets might seem the only option left. Another month, another hedge fund closes its doors because of bad credit bets. In February, Sailfish Capital Partners, a $2 billion-plus fixed-income manager, shut up shop because of sharp falls in value in its supposedly safe top-rated investments. Sailfish certainly won’t be the last to fall either. Event-driven funds’ average losses were more than 2% in January, according to most hedge fund indices.
An increasing number of funds invested in credit, if not closing, are being left with no alternative but to prevent redemptions.
Access this research
Enter your work email address to sign in or check whether your organisation already has access to Euromoney.
