Chart of the month: ZAIS Opportunity


ZAIS Opportunity Fund, an $840 million long/short structured credit portfolio, reported strong October results, boosted in part by a further narrowing of spreads between rating-stable and asset-rich structured credits and rating-unstable and asset-poor structured credits.

The fund, managed by Jerry Hong, aims to avoid idiosyncratic risk and focus on shorter spread durations. That has resulted in 37 months with no negative returns. The fund, one of Red Bank, N.J.-based ZAIS Group's 22 funds and $10 billion under management, advanced 0.94% for the month, besting the 0 .82 % median rise of the Absolute Return Fixed Income/High Yield Index. This