BlueMountain launches three credit funds

Date: Wednesday, April 7, 2010
Author: Hedge Funds Review

BlueMountain Capital Management has raised over $250 million for three new credit funds that have been specifically designed to capture opportunities arising from the financial crisis.

The first of the funds will use a long/short credit strategy while another will invest in distressed securities. The third fund focuses on securitised investments.

The long/short credit fund began trading on February 1, 2009. The other funds launched on April 1.

The funds will use trading strategies already used in BlueMountain's flagship Credit Alternatives fund which has $2.6 billion in assets under management (AUM). The new funds have bespoke liquidity terms reflecting the underlying assets and strategies.

Stephen Siderow, president and co-founder of BlueMountain, said the financial crisis has thrown up an array of opportunities for investors.

"This credit cycle is the first to take place in a world with large and developed markets for credit derivatives and corporate structured credit," said Siderow.

BlueMountain said its new strategies were designed to meet "client needs across different strategies and different areas of the credit spectrum".

"The opportunities created by the fallout from the financial crisis are compelling but asset managers need strong fundamental, quantitative and technical skills to exploit them effectively," said Siderow.

BlueMountain also plans to launch a dedicated asset-backed securities fund in the third quarter of 2010. "The scale and complexity of the asset-backed securities market is unprecedented," Siderow said