Matrix Alternative Asset Management and PVE Capital have joined forces to raise a hedge fund which with further commitments will total some USD150m.

The Matrix-PVE Global Credit Fund will take advantage of the unique opportunities in global credit markets by trading in a broad range of liquid credit instruments, both long and short.

PVE Capital will be the investment adviser to the fund.

Gennaro Pucci, chief investment officer of PVE Capital, says: “The fixed income market is currently offering opportunities that have rarely been seen in the last ten years. Managing money over the next three years will require a good understanding of the risks that currently prevail and that could develop.

“After most of the beta has been captured in 2009 we now see substantial opportunities by identifying value, and then allocating and trading both long and short across different credit instruments and strategies in order to optimise the level of expected return. This is the perfect environment for alpha generation and we believe investors should now start looking favourable again to long/short strategy. Market will still be characterised by what we believe is going to be a long deleveraging process. Volatility should continue to accompany the recovery path initiated at the beginning of the year.”

Chris Merry (pictured), chief executive of Matrix Alternative Asset Management, adds: “We are delighted to have launched the Matrix-PVE Fund with Gennaro Pucci and his team. The combination of the team's investment skills and the existing Matrix infrastructure, including risk management has been well received by investors."

The fund will express a strategic macro credit view using the most appropriate credit instruments to achieve high annualised returns. It aims to deliver these in a variety of market conditions by fundamental analysis and active trading.

The investible universe at this stage in the credit cycle will include credit derivative and quant strategies, single name credits and secured investments.