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Key documents
Overview
A hedge fund investing in fixed income and related securities to exploit dispersion, asymmetry and volatility in financial, corporate and sovereign credit and interest rates.
Fund specific risks
For further terms related to the objective, investment policy and overall risk and reward profile please refer to the prospectus.
- Nature of Investments Risk: The Fund intends to take both long and short positions in corporate and sovereign credit. Therefore, the Fund is subject to
both credit and market risk. These investments include both Investment Grade, below Investment Grade, and unrated securities. The fact that securities are unrated or are rated below Investment Grade reflects a greater probability that adverse changes in the financial condition of the issuer and/or in general economic conditions may impair the ability of the issuer to make payments of principal and interest. - Short Selling Risk: A short sale creates the risk of an unlimited loss. There can be no assurance that the security necessary to cover the short position will be available for purchase. Purchasing securities to close out the short position can itself cause the price of the securities to rise further, thereby exacerbating the loss.
- Fixed Income Securities Risk: The Fund may invest in bonds or other fixed income securities, including without limitation, commercial paper and “higher
yielding” (including non-Investment Grade and, therefore, higher risk) debt securities. The Fund will, therefore, be subject to credit, liquidity and interest rate risks. Higher-yielding debt securities are generally unsecured and may be subordinated to certain other outstanding securities and obligations of the issuer, which may be secured on substantially all of the issuer’s assets. - Derivatives Risk: The Fund may utilize both exchange-traded and OTC derivatives, including, but not limited to, Total Return Swaps, futures, forwards, swaps, options and contracts for differences. These instruments can be highly volatile and expose investors to a high risk of loss, and particularly so to the extent uncleared.
- Liquidity Risk: n some circumstances, investments may be relatively illiquid making it difficult to acquire or dispose of them at the prices quoted on the various exchanges. At times it may be difficult to obtain price quotes at all. The Fund’s ability to respond to market movements may be impaired and the Fund may experience adverse price movements upon liquidation of its investments, or settlement of transactions may be subject to delay and administrative uncertainties.
For share class information, please contact marketing@bluebay.com
Investment approach
- The Fund aims to generate positive risk-adjusted returns by seeking to exploit dispersion, asymmetry and volatility in the market
- The investment universe includes cash and derivative instruments, corporate, sovereign and rate markets primarily in the investment grade space
Investment philosophy
Our rigorous, proprietary research of issuers and individual securities seeks inefficiencies in the market to identify where we believe the market has mispriced risk/return, indicating potential for asymmetric return profiles. By accessing our full toolkit of instruments, we have the ability to implement a range of long and short positions
The Fund offers diversified and uncorrelated exposure in an environment of divergence in global rates and growth