Credit, event-driven funds boost EnTrust in 2010
By Anastasia Donde
Tue Feb 8, 2011
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
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
"If you can earn LIBOR plus 2,000 basis points in senior
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