Highbridge Capital Management, the $8 billion hedge fund run by managers Glenn Dubin and Henry Swieca, is readying its first fixed-income offering. The Highbridge Fixed Income Opportunity Fund is slated to be rolled out next month, according to a Credit Suisse prime brokerage document. The fund's size and capacity could not be determined. A spokeswoman for Highbridge, which is majority owned by JPMorgan Asset Management, declined comment.
The fund will follow a multi-sector approach and allocate across six buckets; cash/short duration, corporate credit, relative value, non-U.S., non-traditional income-oriented and rates/duration plays. The corporate bucket will include investment grade, high yield, distressed and credit default swaps. The non-traditional sector will comprise convertibles, preferred structures, hybrids, closed-end funds and equity-oriented plays. The rates/duration allocation will involve Treasuries, agencies, futures, as well as asset-, mortgage- and commercial mortgage-backed securities.
The fund will vary its exposure to these strategies, which are either managed at Highbridge or JPMorgan, depending on market conditions, according to the document. The firm anticipates investing the bulk of the portfolio in traditional fixed-income investments, with a smaller allocation to special situations.
The minimum investment will be $2 million. Investors in Class A shares will pay an 85 basis points management fee and a 10% performance fee. Those opting for Class B will pay a 1.5% management fee and no performance fee.