Finisterre Capital, an emerging markets total return specialist, is changing the name and liquidity terms of the Finisterre Special Situations Fund.
The fund will now be known as the Finisterre Credit Fund and will continue to concentrate on bottom-up corporate credit.
Since the credit crunch, the fund’s investment focus has been primarily on liquid distressed and corporate credit and it has benefited from the opportunities in these sectors.
Consequently, the redemption terms have been shortened to monthly on 90 days’ notice to achieve a more appropriate balance between the fund’s assets and its liabilities. The special situations type of investments will be limited to five per cent of NAV.
The move comes as a number of clients expressed interest in a more liquid corporate credit strategy. Recent inflows from investors keen to take advantage of the corporate credit segment of the emerging market debt universe have taken the fund’s assets under management to over USD200m for the first time.
“Given the de-emphasis on special situations, we felt the name of the fund should reflect its principal strategy,” says Paul Crean, chief investment officer of Finisterre Capital. “We also believe that the new strategy fits better with our other funds, giving our investors exposure to both top-down and bottom-up investment styles.”