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Credit Hedge Funds Look To Private Debt

Credit strategies in hedge funds have had a torrid few years with outflows of -$28.2bn in 2016 and -$23.8bn last year, according to data from Preqin. This year doesn’t look to favour credit strategies either and it is prompting fund managers to look at private credit, which sees them giving up liquidity and duration in order to get higher yield. In the low volatility bull market of the last five years credit strategies have failed to perform because of low interest rates and tight credit spreads. Don Steinbrugge, founder and CEO of Agecroft Partners, says: “Various fixed income strategies have had a...