After market storm, hedge funds launch to catch the recovery wave

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At least eight European hedge funds are launching portfolios betting on a recovery in corporate debt and emerging markets after the coronavirus ...

LONDON: At least eight European hedge funds are launching portfolios betting on a recovery in corporate debt and emerging markets after the coronavirus pandemic triggered the biggest market rout in a generation.

With eight launches since the start of the pandemic and more funds pressing ahead with plans already in place, the industry is on track to at least match the number of credit and fixed income fund launches of recent years. In the last week of March, investors pulled a record US$109 billion out of bond funds followed by data provider Emerging Portfolio Fund Research.

Nordea launched its Flexible Credit Fund on March 18 specifically to focus on price discrepancies in US credit markets and raised €15 million in days.

 

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