CIFC has launched a multi-strategy “best ideas” fund that gives non-US investors easy access to its broad and growing expertise across the alternative credit arena.
The CIFC Multi-Strategy Credit Fund is a UCITS fund, designed to appeal to non-US investors looking for long-only exposure to selected sub-investment-grade.
The lead portfolio manager of the fund is Jason Horowitz, CIFC’s Head of US High Yield Bond Investments. Horowitz is an experienced high-yield manager and already manages the CIFC Long-Short Credit Fund – a high yield strategy with an absolute return focus.
Horowitz is supported by the wider team of CIFC portfolio managers in the US and Europe across different specialisms, including high yield, short-duration high yield, leveraged loans, structured credit and liquid opportunistic credit.
The fund has its own asset allocation committee, including Steve Vaccaro, CIO and CEO; Steven Gendal, Head of Opportunistic Credit; Jay Huang, Head of Structured Credit Investments; Stan Sokolowski, Deputy Chief Investment Officer; and Rinse Terpstra, Senior Investment Analyst, Europe. The team members have an average experience of over 25 years in their respective fields.
Horowitz said: “Many believe rates have peaked, so investors are becoming more interested in fixed-rate credit to lock in the current high rates. At the same time the threat of recession is strong, and we believe markets are likely to see wide dispersions of returns. In our view, fundamental credit selection will matter more now than at almost any time in the past 15 years – which plays well to CIFC’s strengths.”
He added: “This is a liquid portfolio designed to fit within a UCITS structure, with an emphasis on sub-investment grade fixed income combined with our best ideas in areas such a structured credit, senior secured loans and liquid credit opportunities identified by the distressed team.”
Josh Hughes, CIFC’s Global Co-Head of Business Development, said: “CIFC has built a strong reputation in alternative credit with a multi-strategy platform. This fund gives investors like multi-managers, wealth managers, family offices and institutions access to the full breadth of our expertise.”
He continued: “This fund aims to provide long-only exposure to a diversified portfolio of sub-investment-grade credit that is well researched. Through a combination of agile top-down asset allocation and strong bottom-up credit selection, we aim to deliver an attractive level of income as well as opportunity for capital growth.”
Domiciled in Dublin, this is CIFC’s third fund within a liquid UCITS structure. The CIFC Long-Short Credit Fund and the CIFC Multi-Strategy Credit Fund are not available to US investors.
Like the others, the new fund is valued daily and has daily trading on subscriptions. The fund is US$-denominated, with hedged currency share classes in sterling, euros and Swiss francs.