Global Investment House says the Global Distressed Fund was ranked sixth in the fund of funds – distressed securities/event driven category for May 2010 by BarclayHedge.
Joseph Joseph (pictured), the head of hedge funds at Global, says: “The Global Distressed fund continues to outperform its peers and its continuous recognition by BarclayHedge, a leading alternative investment database is quite an achievement. The Global Distressed Fund is one of the flagship products managed by the Global hedge funds team and we are proud of its performance over its eight year history.”
Joseph says the spreads which were available during 2009 and the early part of 2010 no longer exist cheaply. He believes that the first half of the year was more about preserving capital and selling strength, while the later part should post a more robust trading environment.
He says the distressed space is quite niche and during current times an experienced manager can still source good deals and returns.
The fund is currently up 3.2 per cent as of May 2010, which is higher than its benchmarks within the distressed fund of funds strategy. Additionally, the fund has delivered approximately 11.0 per cent over the past 18 months, during which time the benchmark index has delivered only 6.1 per cent.
Rajiv Nakani, head of alternative asset management at Global, adds: “Distressed strategy works well during post recessionary periods as world economies undergo major restructurings, re-financings and consolidation. We believe that the economic and financial environment continues to be uncertain over the near future and that these conditions provide an excellent environment for acquiring high quality distressed assets via fund of funds investments.” He further added that diligent research and cautious approach to investing should provide excellent risk adjusted returns during current periods.”
The Global Distressed Fund provides GCC investors a hedge against continued near-term market turbulence and an opportunity to profit from the distressed strategy space, which has been among the top performing strategies in 2009.
