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CIFC Launches UCITS-Compliant ‘All-Weather’ High Yield Strategy

Alternative credit specialist CIFC has launched a long/short high yield UCITS fund managed by industry veteran Jason Horowitz, who has been running similar strategies for over 10 years.

Horowitz joined the New York-based manager in January as Head of U.S. High Yield Bond Investments. He has been managing the strategy for CIFC since February 1, 2020, delivering a 12.69% net gain to the end of July, compared with a -0.18% loss for the wider U.S. high yield market. The strategy made positive returns during March at the height of market anxiety around Covid-19.

The UCITS fund, which mirrors the existing strategy, is designed to seek high single-digit returns while protecting capital in down markets. The strategy is offered as a new sub-fund of CIFC Credit Fund ICAV, a UCITS structure domiciled in Dublin.

CIFC London MD Josh Hughes said: “CIFC believes that this is the right time for a strategy like this, which has shown over the long-term that it can deliver attractive returns in all weathers. Jason has 25 years of investment experience and is supported by CIFC’s strong credit research team. By launching the strategy within a UCITS fund structure we can open it up to a wider audience, including wealth managers and private banks, as well as European-based pension funds, family offices and other investors.”

Horowitz previously worked at Millennium Management. Prior to that he spent 13 years at Muzinich & Co., overseeing an award-winning long/short corporate credit hedge fund. He was joined at CIFC by Brandon Hole and Eric Seiden, who worked with Horowitz at Millennium Management as well.

Horowitz said: “I believe that the high yield market is well-suited for a long/short strategy because there are lots of market inefficiencies that create opportunities in either direction for those with the research capacity and technical expertise. CIFC has a 47-strong investment team, with 20 analysts who will all bring ideas to this strategy.”

Steve Vaccaro, CEO and CIO of CIFC, said: “Jason, Brandon and Eric have a vast amount of expertise and experience in the high yield market. When you add this to CIFC’s existing deep bench of corporate credit research analysts, it makes for a compelling proposition. This fund demonstrates our commitment to continuing to expand the range and flexibility of our investment solutions for investors around the world.”

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