Man GLG has launched a fund providing access to its long-running alternative credit strategy, which aims to ‘take advantage’ of increasing uncertainty in debt markets.
The Man GLG Credit Multi-Strategy Alternative fund is managed by the Man Group subsidiary’s head of multi-strategy credit Chris Huggins. He is supported by a 24-strong investment team.
The fund carries a management fee of 1% and a performance fee of 20%.
The vehicle runs 10 distinct underlying credit strategies investing across Asia, Europe and the US, focused on convertible arbitrage, long-short credit and capital structure arbitrage.
Capital is allocated based on qualitative and quantitative factors, including macro-economic, fundamental and market considerations.
Huggins said that while the fund seeks to generate positive return for investors regardless of the credit cycle, the potential volatility created by the end of quantitative easing is viewed as an opportunity.
‘Spreads have widened, dollar cash rates are sucking liquidity from risk assets, and the frequency of large idiosyncratic prices moves has increased,’ he said.
‘With the ability to invest on both the long and short side across multiple areas of the credit market globally, and with access to a team with deep expertise investing in these markets, I believe we are well positioned to take advantage of these changing dynamics.’