Performance

Distressed allocations boost Himeji

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The Stratton Street Himeji Fund gained 8.68% in April, largely thanks to continuing outperformance by the fund's mid-cap distressed valuation cyclicals. The portfolio included 32 such names, accounting for 20% of the fund. These were stocks that fitted the criteria of being second-line, cyclical plays with valuations under pressure and very closely correlated with credit default spreads, as well as with close affiliations to a keiretsu, or Japanese conglomerate, with a Japanese bank as one of the leading shareholders.

One example is Mazda, a second-line name with some balance sheet issues, but with the advantage of being part