Guggenheim credit fund plummets 8%
By Rob Copeland
Thu May 9, 2013
The $850 million strategy has "very tough month."
Guggenheim Investments' $850 million GS Gamma fund has turned in one of the worst months for a credit strategy since the depths of the financial crisis, losing about 8% in April, dragged down by the volatile "interest-only" (IO) bond market, according to an investor communication.
In a May 2 email to investors, GS Gamma founders Jay Fiacco and George Sykes conceded it had been a "very tough month." They blamed concentrated bets in both IO's and inverse IO's, a related instrument more sensitive to price swings because of inherent leverage (GS Gamma does not use any traditional leverage). The market for such bonds cratered...
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