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Highbridge Capital Management Closes Convertible Dislocation Fund

J.P. Morgan Asset Management subsidiary Highbridge Capital Management has held the final closing of its Highbridge Convertible Dislocation Fund, with total investable capital of more than $2bn, including approximately $685 million in equity commitments.

The fund was formed in response to convertible market dislocations that commenced in March to invest in relative value and event driven convertible instruments with a focus on North America and Western Europe, a mandate consistent with Highbridge’s longstanding commitment to relative value alternative investment strategies. The fund, which began investing in June 2020, is approximately 50% invested.

“The convertible market dislocation that we observed earlier this year provided the Fund substantial capacity to take advantage of investment opportunities across North America and Western Europe,” said Jason Hempel, Co-CIO of Highbridge Capital Management. “While convertible market valuations have rebounded, primary market issuance, which now exceeds $100 billion in 2020, continues to be a source for new ideas and a driver of secondary market trading opportunities.” 

Jonathan Segal, Co-CIO of Highbridge, said, “We believe that convertible debt will remain an attractive capital market solution for many borrowers due to the global rise in equity markets and the flexibility that convertible notes offer to management teams in a period of uncertainty. We look forward to continuing to pursue these investments on the Fund’s behalf and we greatly appreciate the support of our investors and their commitment to the Fund during the COVID-19 pandemic.”

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