The manager of an award-winning credit fund that's tripled its benchmark since 2014 told us how he's staying ahead of a recession and credit crunch
It holds a five-star rating from Morningstar and has won long-term awards from Refinitiv Lipper.When Sam Reid says hisBut what he's actually saying is he's able to invest in a much wider range of assets than managers of other credit funds.
River Canyon says the fund has returned 4.97% to investors annually since its inception at the end of 2014, while its benchmark, the, has returned 1.56% annually. And this year the fund is up 4.12%, while its benchmark is down 9.02%. "You really get access to hedge fund caliber resources in a mutual fund structure," he said. He added that at times he's held securities backed by assets like franchise fees, debtor-in-possession financing, and litigation finance — and that each of those has very low correlation to the rest of the credit market.
That means if interest rates fall off, his portfolio is designed to hold up much better than the Barclays benchmark. "North of 50% of the fund is investing in structured credit which have various exposures to the consumer," he said."We think the consumer has so far weathered the storm pretty well and there are a lot of other provisions that will help them."
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