Highbridge Capital Management (Highbridge), a wholly owned subsidiary of JP Morgan Asset Management, has held the final closing of the Highbridge Convertible Dislocation Fund with total investable capital of more than USD2 billion, including approximately USD685 million in equity commitments.In response to convertible market dislocations that commenced in March, the Fund was formed to invest in relative value and event driven convertible instruments with a focus on North America and Western Europe. This mandate is consistent with Highbridge’s longstanding commitment to relative value alternative investment strategies. The Fund, which began investing in June 2020, is approximately 50 per cent invested.
The Firm’s focus on credit and volatility investment strategies provides a platform for consistent idea generation and investment opportunities. When appropriate, Highbridge may mobilise capital, utilising opportunistic investment vehicles to capture market dislocation events. The Firm benefits from the larger JP Morgan Global Alternatives umbrella, a USD145 billion platform spanning real estate, infrastructure, transportation, hedge funds, private equity, private credit and liquid alternatives.
“The convertible market dislocation that we observed earlier this year provided the Fund substantial capacity to take advantage of investment opportunities across North America and Western Europe,” says Jason Hempel, Co-CIO of Highbridge Capital Management. “While convertible market valuations have rebounded, primary market issuance, which now exceeds USD100 billion in 2020, continues to be a source for new ideas and a driver of secondary market trading opportunities.”
Jonathan Segal, Co-CIO of Highbridge, says: “We believe that convertible debt will remain an attractive capital market solution for many borrowers due to the global rise in equity markets and the flexibility that convertible notes offer to management teams in a period of uncertainty. We look forward to continuing to pursue these investments on the Fund’s behalf and we greatly appreciate the support of our investors and their commitment to the Fund during the Covid-19 pandemic.”
