Credit, event-driven funds boost EnTrust in 2010

By Anastasia Donde

Tue Feb 8, 2011

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The New York fund of funds was a top performer in 2010.

At a time when funds of funds are being criticized for mediocre returns and investors are pulling their money, New York’s EnTrust Capital stands out for posting above average performance and growing its assets by $2 billion since 2008. Its flagship institutional fund of funds, the EnTrust Capital Diversified Fund, gained 11% in 2010, well ahead of the InvestHedge Composite Index, which rose 4.86%.

Clients and consultants said the firm’s profits stemmed from hefty allocations to credit, special situations and event-driven hedge funds—the best-performing strategies of the past year

As of the fourth quarter, $5.5 billion EnTrust had invested about 42% of the Diversified Fund in credit hedge funds and 17% in special situations funds. The firm began building a sizeable allocation to credit funds in 2008 when spreads started to widen significantly, said Gregg Hymowitz, managing partner.

"If you can earn LIBOR plus 2,000 basis points in senior secured...

ISSN: 2151-1845 / CDC10004H


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