Ironshield Capital Management, the London-based long/short event driven hedge fund that trades stressed and distressed European corporate credit, has launched its Ironshield Credit Fund on the MontLake UCITS Platform, with the aim of capitalising on recent credit market dislocations.
The current environment is playing to the strengths of special situation hedge fund strategies, which seek to generate alpha from announced deals, and as merger spreads widen out, new opportunities are arising.
By Philip Young, partner, Cooke, Young & Keidan LLP
For years people in the markets have been asking when the sovereign and corporate debt bubbles – fuelled by ultra-low interest rates and quantitative easing – would finally burst.
In the current climate, investors are looking for more defensive hedge fund strategies, capable of providing a predictable risk/return profile.
Activist hedge fund manager CIAM has written to shareholders of French reinsurer SCOR to warn of significant corporate governance deficiencies at the firm, and has called on the company to postpone its upcoming AGM.
Algebris Investments, Davide Serra’s multi-asset class hedge fund firm, says markets are “ripe with opportunities”, and is now preparing to deploy its “dry powder” liquidity in a range of asset classes it sees as benefiting from future fiscal stimulus and persistent low interest rates.
Covid-19 will impact Greek tourism, but with strong PMI figures in 2019 and a new stable government, hedge funds such as Greylock Capital see long-term opportunities in the country; in particular Greek debt and real estate. Hopefully, the storm that ensued from its debt crisis in 2010 will not be repeated.
By Ben Watford, Eversheds Sutherland – Selecting the fund domicile which best suits an emerging hedge fund strategy is one of the key decisions facing investment managers ahead of launch. The choice they make at the outset will have far reaching regulatory and tax consequences throughout the life of the fund.
In the current challenging capital raising environment, emerging hedge funds need to juggle a number of priorities, including having a clear business plan and building a strong track record. But a key element in determining a start-up hedge fund’s fate is keeping a close eye on expenses.
Hedge funds looking to launch in Europe should be selective in their infrastructure investment, identify credible target client groups and understand the importance of concise marketing material which clearly outlines their unique selling point.