The Key Recovery Fund is among the top-performing distressed funds of funds in the InvestHedge universe up 2.04% in July and 10.35% for the year to date.
All the strategies in the $62.4 million fund were positive in July with credit long/short (24%) contributing 0.57%, distressed (58%) 1.4% and event driven (15%) 0.23% to the monthly return. The strongest performance came from Redwood Offshore Fund, which was up 6%. The annualised return since inception in July 2001 is 5.45%.
The fund has 15 underlying managers and the top five holdings are Davidson Kempner Distressed Opportunities (16.9%), Monarch Opportunities Fund