Higher Octane LO / HY Specialist Credit Funds
I am looking for some examples of non-distressed, non- L/S credit funds that have a total return mentality. Thinking along the lines of Polen Capital, Artisan Partners, and Beachpoint.
Also, as the way I phrased this post suggests, I am not confident on the nomenclature in this space. Is there a catch-all term to describe the names listed above? Opportunistic credit? Thanks in advance.
Think Beachpoint is distressed
Like many things in the space, hard to neatly fit it under one category because it means different things to different people. I would say broadly speaking, that sounds like a healthy description of public opportunistic credit.
This is helpful, thanks.
Artisan credit does run a l/s and semi-distressed strategy too but is mostly long only
Beach point is similar, I believe they also have a L/S product?
Polen I only know as a growth-oriented equity shop so I have my doubts that their credit team is comparable to the above two
Overall, to my knowledge, at traditional LOs it’s tough to find seats that do the concentrated more stressed type HY stuff that Artisan and Beach Point do. Some of that is due to size. I believe some of the MF/UMM PE shops have long only strategies that do similar stuff but have to be careful as some of their credit is just CLOs which are probably boring as fuck to work at.
I know 1-2 of these funds but they're small, I don't think anybody is really running this strategy larger than ~$2bn. I would personally call it Credit Opps but honestly the word "Opportunities / Opportunistic" has lost all meaning...sometimes in means stressed, sometimes it means multi-asset, sometimes it's just supposed to sound cool. IF you can find this, it's gonna fall into 1 of 2 categories. 1) Small independent fund that pays accordingly. 2) Step-out strategy for a larger manager where it's not all of your work, you're gonna be a regular HY or loan analyst who is also responsible for putting ideas in that strategy.
All three of Polen (DDJ), Artisan and Beach point run strategies >$5bn
Is that across asset classes or just w/in HY? Because agree I know of strategies doing this if you include those that can do structured, equities, etc. but didn't know that about purely performing corporates.
Both PIMCO (Flexible Credit) and Lord Abbett (Credit Opportunities) run long-only, stressed, multi sector funds
Thanks.
Polen Credit (DDJ Capital), Artisan, Osterweis, Crossingbridge, Canaras, Lord Abbett, Penn Capital, Arena Capital (not Arena Investors), Post Advisory, Shenkman, etc all have more opportunistic high yield strategies and traffic in distressed, some more than others
A lot of names I have not come across. Super helpful, thanks. +SB
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