Anchor Point Capital is looking to launch a credit-focused fund of hedge funds in the fourth quarter. The firm was launched last year by Tim Crowe, former chief investment officer of the John S. & James L. Knight Foundation, and Albert Hsu, who was responsible for Atlantic Philanthropies' $1.8 billion in hedge fund investments. Anchor Point has already raised several hundred million in assets, with about half coming from foundations, a large mandate from a religious institution, and the rest from endowments, family offices and high-net-worth individuals.
The credit strategy will use a mix of credit-focused hedge fund managers plus a tactical and strategic overlay. Hsu expects this approach to significantly outperform passive fixed income, from which "the returns that you're getting are really tepid." Going into next year the global economy is likely to dampen, he noted. With interest rates increasing, liquidity will dry up and some companies and emerging market economies will come under pressure; Hsu expects this to yield a wealth of opportunities in the distressed securities space.