Funds riding the wave of heavy CDO issuance eked out some gains for credit portfolios, as did the right bets on credit default swaps. The Absolute Return Fixed Income and High Yield Index rose 0.52%, putting its year to date at 1.31%. Bay Harbour Management, the $735 million hedge fund shop, was one of the frontrunners. Its three funds operating a credit-based strategy logged gains of 2.18%, 1.41% and 1.06% for the month. Michael Levitt's Stone Tower Capital climbed 1.68% in February, taking the fund north of 11% since its inception in October 2005.