MacKay Shields Seeking Funds For Rare Hedge Fund

  • 03 Nov 2002
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MacKay Shields Financial is seeking to raise $500 million for its long/short high-yield bond fund--a rare type of hedge fund that the firm launched September 1, according to BW sister publication Foundations and Endownment Money Management. "The environment is perfect for long/short funds because they are able to generate yield in a tough market," said Robert Nisi, managing director at MacKay Shields, which is seeking to raise assets from both domestic and international investors--especially foundations and endowments--by the fourth quarter of next year. Currently, the fund has raised slightly more than $75 million. The firm is targeting the non-profits through existing relationships and consultant contacts, and is seeking to take advantage of the high tolerance for risk and increased interest in alternative investments by non-profit funds. The funds are managed by Don Morgan, the firm's lead high-yield bond portfolio manager.

The fund would contain up to 20% in distressed debt, said Morgan. Currently, it contains about 7%. Morgan added that the current notion that there are not enough high-yield bonds available in the market is a misconception. "Most large mutual funds lend their bonds to give themselves a bit more of an incremental return," said Morgan. "We use Salomon Smith Barney's and Bear Stearns' trading desks, and we're getting a borrow on about 85-90% of the bonds we're looking to borrow.

  • 03 Nov 2002

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Share % by Volume
1 Citi 10.72
2 Bank of America Merrill Lynch (BAML) 10.66
3 Credit Suisse 6.45
4 Lloyds Bank 6.42
5 JP Morgan 6.35

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
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1 SG Corporate & Investment Banking 1,260.06 2 126,006,164,037.19%
2 Rabobank 1,081.86 1 108,185,922,974.77%
3 Wells Fargo Securities 430.57 1 43,057,020,785.00%
4 SK Securities 192.86 1 19,286,162,593.99%
4 Meritz Financial Group Inc 192.86 1 19,286,162,593.99%