MacKay Shields Seeking Funds For Rare Hedge Fund

  • 03 Nov 2002
Email a colleague
Request a PDF

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 Total Volume $m No. of Deals Share % by Volume
1 Bank of America Merrill Lynch (BAML) 7,026 25 11.95
2 Citi 6,449 21 10.96
3 BNP Paribas 5,093 18 8.66
4 Barclays 4,040 11 6.87
5 Lloyds Bank 3,615 14 6.15

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 1,505.59 4 13.16%
2 SG Corporate & Investment Banking 1,292.64 1 11.30%
2 Rabobank 1,292.64 1 11.30%
4 Wells Fargo Securities 942.61 3 8.24%
5 Mizuho 875.48 2 7.65%