BlueMountain Capital Management, Andrew Feldsteins $4.5 billion hedge fund firm, began trading a new closed-end hedge fund on October 1 designed to profit from opportunities in the structured corporate credit markets.
The new vehicle, called Correlation Relative Value II Fund, has $80 million in assets and is managed by Bryce Markus, a managing principal.
CRV II is BlueMountains third long-term closed-end fund dedicated to credit correlation trading. Timberline Fund, launched in March 2006, has netted 44% year to date through September 30. BlueMountains Credit Relative Value I Fund, which wound down in February 2007, returned an annualized net gain of