Hedge Funds

CypressTree aims for leveraged loans


Boston-based CypressTree investments is launching a new leveraged hedge fund investing in U.S. non-investment grade floating rate loans. The fund, CypressTree Leveraged Alternative Income fund, is based on a bottom-up, credit intensive process, emphasizing credit quality and structure over yield spread.

The team, which specializes in leveraged loans, high-yield bonds and distressed securities, and manages a total of over $1 billion, is headed by Richard Omohundro, John Frabotta, Martha Hadeler and Peter Carnes.

While the group's standard loan portfolios look to return around 300-325 bps over LIBOR, the new fund will, with use of leverage effected via total return