Credit specialist Cairn racks up 40% return in first year with financials subordinated debt strategy


Philippe Kellerhals
Cairn Capital, the independent London credit specialist with around $17 billion under management and long-term advice, has just capped a highly profitable first year of trading with a fund focused on investments in undervalued subordinated bonds of financial issuers.

The Cairn Subordinated Financials Fund launched in October 2011, and has made an impressive net return of 42.9% in its first 12 months – surpassing the upper boundary of its initial return target of 25-40%. The fund is up 33.8% this year to the end of October.

Cairn Subordinated Financials debuted with €45 million