Muzinich & Co has launched a new European-focused total return credit strategy targeting enhanced returns and reduced downside risk against large drawdowns.
The Muzinich European Credit Alpha Fund, a sub-fund of Muzinich’s Irish-domiciled UCITS range, will be managed by Thomas Samson, who has delivered strong performance over many years with the firm’s European High Yield Fund. He will be supported by Assistant Portfolio Manager Hugo Squire.
The Fund aims to generate attractive mid-to-high single-digit returns over the course of a full market cycle. This long/short, total-return credit strategy seeks to predominantly invest across European credit markets in strong conviction trades. The strategy is based around three main books: Core Long, Arbitrage and Overlay Portfolio and aims to use a diverse range of instruments including cash instruments, floating and fixed-rate instruments, loans and derivatives.
“We have a constructive outlook for credit for the years ahead,” says Samson. “However, with current corporate credit spreads at low levels and rates beginning to move upwards, we believe a long/short strategy gives us the flexibility necessary to deliver attractive returns.”
The Fund is currently available to investors in Ireland, UK, Switzerland, Germany, Belgium, France and Luxembourg. Further registrations will be added throughout 2018.