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....