GREENWICH, Conn., April 7, 2014 /PRNewswire/ -- Tradex Global Advisors announced today the launch of its Short-Biased High Yield Portfolio.
The portfolio is an actively managed short-biased credit fund that targets an asymmetric return profile. It is expected to capitalize on the current distorted credit market conditions in high yield. The high yield market has more than $1.5 trillion in outstanding junk bonds. Prices are at historic highs and yields are at historic lows; in-line with the 2006 credit market peak. The Fund will primarily be short longer-dated, unsecured/subordinated, fixed-rate cash bonds. These bonds are typically vulnerable to default or restructuring events and many may struggle to survive in this low-growth, competitive landscape. Longs will be used to offset some of the negative carry, and will be focused on shorter-dated, secured, floating-rate bank debt. The structure seeks to minimize negative carry, allowing Tradex to remain patient for company-specific events to occur.
Tradex was invested in short-biased high yield strategies in 2007-2008, achieving very strong results before exiting the trades early in 2009. Tradex believes it is the right time again in the high yield cycle to be short. The firm's Chief Investment Officer, Michael Beattie, said, "It is impossible to perfectly time the events or defaults in highly levered, high yield companies, but I believe this is pretty close to an all-time top." He believes that the indiscriminate buying by yield hungry investors will end badly. Richard Travia, Tradex's Director of Research, said, "By all metrics and in our opinion – including spreads, yields, prices and quality – B & CCC-rated bonds have very little upside and tremendous downside risk." Travia goes on to mention that, "This is not a blanket macro call on all of high yield, rather it is a company and event specific strategy."
About Tradex Global Advisors
Tradex Global Advisors, LLC (TGA) is headquartered in Greenwich, Connecticut. TGA manages opportunistic internal hedge funds and niche-focused fund of hedge funds. With its targeted focus, TGA seeks to identify very specific trading opportunities and to partner with highly experienced teams to execute the strategy. TGA was founded in 2004 and is managed by Jeffrey Trongone, Michael Beattie and Richard Travia. TGA was an affiliate and spinout of Tradex Capital Markets, a large and successful macro fund of managed accounts that launched in 1998, collectively with peak assets of more than $3 B.
Contact Jeffrey Trongone, 203-863-1518
This press release is for informational purposes only.
SOURCE Tradex Global Advisors, LLC