BlueBay Asset Management, a U.K.-based credit fund manager with USD3.5 billion in assets under management, is adding another long/short fund to its suite of absolute return funds. The EUR120 million Blue Credit Opportunity Fund will be its fourth long/short vehicle and will invest in high yield leveraged loans, high yield bonds, special situation credits and credit default swaps, employing a short bucket of 35% to maximize returns.
The fund was arranged with Citigroup, which is now marketing the structure to institutional clients and high-net-worth investors globally. Structuring officials at Citi and Alex Khein, head of structured products at BlueBay, declined comment. The fund's target return could not be determined. An official close to BlueBay said a combination of absolute return trading, portfolio management and leverage will be used.
