New York money management firm John A.Levin & Co.'s Levco Debt Opportunity Fund had a difficult January, with some gainers but losses in British Energy. Stuart Kovensky, portfolio manager, declined to comment.
The fund allocated 59.7% to bank debt as of January up from 56.2% in December, according to a letter to investors obtained by sister publication Alternative Investment News. The letter cited an investment in Mirant Corp. as a positive contributor to performance. The fund has a long position in senior bank debt and senior notes for Mirant and Mirant Americas Generating Inc.
The fund is also involved with Owens Corning, having held bank debt, senior notes and common stock. The market was largely disappointed last month by Congressional inaction relating to asbestos legislation. "These positions performed well in November and December and we had sold our common stock position and approximately two-thirds of our senior note exposure prior to year-end. We think the risk/reward at current levels is attractive and currently hold our remaining positions," the letter says.