GAM has launched its first market-neutral credit fund, in collaboration with San Francisco-based credit manager DCI, with a strategy that the firm describes as “a unique offering in the growing UCITS III universe”.
GAM Star Diversified Market Neutral Credit is a UCITS III fund that will use DCI’s quantitative approach to invest in a diversified long/short portfolio, predominantly focused on investment grade credit.
DCI manages over $3.5 billion. It uses quant systems to determine corporate default probabilities and to value corporate credit instruments. It then conducts carefully risk-matched and diversified long and short portfolio to exploit the revealed mispricings.