KBC Alternative Investment Management, a hedge fund manager with USD1 billion under management, is launching a credit arbitrage hedge fund and will use cash and derivative instruments. Andy Preston, cio in London, said the fund will be market neutral and incorporate elements of capital structure arbitrage.
The firm is launching the fund because it has identified market opportunities and pricing anomalies during the last several months when it was running the fund on seed capital and back-testing its strategy.
KBC AIM already runs two convertible arbitrage hedge funds, one of which has complete flexibility in its hedging techniques and has returned 20% year-to-date.
