HSBC Alternative Investment, HSBC's funds of funds business, has launched the HSBC Distressed Markets Fund, a fund of hedge funds that will have up to 15 underlying managers. The fund joins Unigestion's Horizon Credit Hedge and Harcourt Investment Consulting's Belmont Recovery fund, which have also recently launched.
HSBC's $85 million short-dated fund currently invests with six managers. The investment strategy is focused on managers investing at the top of the capital structure such as distressed bonds, corporate debt and leveraged loans. As spreads start to narrow the investments will move down the capital structure the underlying funds will