Channel Capital Advisors has launched a high yield catalyst fund, which aims to generate net returns of 10 to 12 per cent with low volatility and little correlation to the major markets.
The fund invests mainly in liquid bonds, equity and CDS, The strategy seeks to identify mispriced corporate debt where a catalyst will drive price realignment and profit realisation.
The fund is managed by Peter Baker, a former high yield portfolio manager at Lazard and SGS, and Frits Lieuw-kie-song, a former high yield portfolio manager at LKS and SGS.
“We are both delighted to be back working together at an interesting time in the credit markets,” says Lieuw-kie-song. “And we are both very excited to bring our strategy to Channel given their track record in corporate credit and the stability of the management platform.”
“We feel Frits and Peter have the talent, focus and discipline to maximise this investment opportunity,” says Walter Gontarek, chief executive of Channel. “Their pedigree is a complement to our own credit expertise and their return profile has little correlation to traditional credit market indices.”