It is one thing to have made money in the rallying credit
markets this year, but another to have done so with tight risk
management and liquidity constraints, and without running a
heavily net long portfolio.
Brevan Howard's newly spun-out Credit Catalysts Fund -
managed from New York by a 20-strong team headed by former
Morgan Stanley credit trading managing director David Warren -
has done just that.
Although the fund formally launched in June as a standalone
entity, the strategy has gained an estimated 24% net of fees to
the end of September, with its short positions exceeding its
long positions for most of the year....