The Hermes Absolute Return Credit Fund became active on the 29 May, and aims to deliver risk-adjusted returns across the global debt spectrum over a rolling 12-month horizon.
Manager Fraser Lundie, co-head of Hermes Credit, and senior portfolio Raphael Muller, are targeting a portfolio of between 100 and 150 mainly low-investment grade credit opportunities, with all investments hedged back into US dollars.
The fund will utilise the same philosophy as Lundie’s Hermes Multi Strategy Credit and Global High-Yield Bond vehicles, which have delivered 12.8% and 54.71% performances over two and five-year periods respectively.
“The Hermes Absolute Return Credit Fund is a market neutral solution and follows our highly successful philosophy that investors must look beyond issuers and focus on a multi strategy approach which incorporates both long and short investments across multiple security types including loans, bonds and CDS,” said Lundie.
“In the past decade we have seen the globalisation of credit markets in the US, Europe and Emerging Markets and in order to fully maximise these opportunities on offer, investors must invest with a truly global mandate, which is core to our offerings.”
