Launches & Closures Hedge Funds

Whitebox takes contrarian view

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Whitebox Advisors is introducing a special opportunities fund on May 1 that will buy bonds abandoned by the vast majority of credit market players. The opportunity, as Whitebox founder Andy Redleaf described it in a recent letter, is all about "gathering sludge, cautiously."

Whitebox Contrarian Credit Fund will buy up performing corporate bonds that have been sold by institutional investors and proprietary dealers unwilling to hold credits with low prices or junk ratings. With a portfolio of bonds from 100 to 125 issuers that are trading at 40 or below, Whitebox expects the current portfolio yield to range from