Despite notching up average annualised returns of -6.9% up to the end of September, credit hedge funds are finding favour with investors with 41 per cent saying they want to increase their exposure to the strategy, according to report by Institutional Investor.
Despite notching up average annualised returns of -6.9% up to the end of September, credit hedge funds are finding favour with investors with 41 per cent saying they want to increase their exposure to the strategy, according to report by Institutional Investor.
The report cites the last hedge fund report from Preqin as revealing that credit is now the second most popular strategy actor macro, which had the backing of 50 per cent of those surveyed, with macro funds having recorded average annualised returns of 6.2% to the end of September.
Preqin’s findings are supported by a recent Sigtech survey, which found that credit funds are now more popular with investors than both managed futures and multi-strategy funds, two of this year’s top performing strategies.
SigTech’s vice president of investor solutions is reported as saying that recent movements in the yield curve and credit spreads may be behind investors betting on credit funds to generate string returns in the coming year.
