Cairn Capital, the London based credit asset management and advisory firm, has joined forces with Oyster Funds, the Luxembourg fund family of Swiss banking group Syz & Co, to launch a corporate credit fund under the Ucits III framework.
The new fund, Oyster Credit Opportunities, is a long/short corporate credit fund, targeting returns in excess of Euribor + 200bp in normal markets and in excess of Euribor + 300-500bp in more volatile markets.
It is aimed both at institutions and intermediaries such as family offices acting on behalf of individuals.
Cairn Capital is responsible for managing the fund, while Syz & Co provides the fund infrastructure and distribution through its Oyster Funds structure and client reach.
Alan Mudie, chief executive at Oyster Funds, says: “The recent credit environment has provided great returns to investors who bought at the beginning of the year, from a pure long only perspective. However, given the rally in credit spreads this year and the volatility still embedded in the market, this new fund is a compelling value proposition: uniquely, it can express views on the debt of the company through a combination of long exposure with the flexibility to generate alpha through short positions. We were looking for a manager to combine corporate cash bonds and synthetics in order to reduce volatility and deliver absolute returns. Cairn Capital’s credit management track record and expertise proved to be decisive for our partnership.”
Andrew Jackson, chief investment officer and portfolio manager at Cairn Capital, adds: In Oyster Credit Opportunities, we have created an innovative fund product that properly addresses the current credit environment, by combining a balanced risk/reward relationship and constant monitoring of underlying liquidity. Oyster Credit Opportunities offers compelling risk adjusted returns given the fund’s lower volatility deriving from its investments in a more defensive asset class. We are delighted with our partnership with Oyster Funds; with their Ucits III expertise and our credit asset management expertise and track record we look forward to unlocking opportunities for investors.”
