Cheyne Capital Unveils New Sub-Investment Grade Strategy

Aug 1 2017 | 7:14pm ET

Alternative credit specialist Cheyne Capital has debuted a new distressed business that will be managed by former BlueBay Asset Management executive Anthony Robertson.

Although already very prominent in credit investing and thus no stranger to the distressed space, Cheyne’s new Strategic Value Credit (SVC) strategy is the first time the London-based company has created a dedicated group to focus on distressed investing. 

Cheyne’s decision to launch a separate sub-investment grade business is anchored on the idea that opportunities in the segment will increase as the current credit cycle comes to a close, market dislocations rise and liquidity constraints grow in the high yield market, the company said in a statement. 

The new strategy will employ a value investing approach in order to capitalize on market inefficiencies, and will initially focus on heightened illiquidity in the European sub-investment grade credit market, the statement added. It will seek to build a concentrated portfolio of mis-valued securities as well as selective distressed situations.

Robertson, formerly head of leveraged finance at BlueBay Asset Management until October of last year, will be CIO of SVC and will build an initial team of 10 for the new effort, including portfolio manager David Lofts and senior analysts Jacopo Rubbia and Jorge Lazaro.

“We see growing opportunities in sub-investment grade credit, both today and into the future with increasing investor interest in capacity-constrained, closed-end strategies that are best adapted to harnessing the dissipating market liquidity,” said Robertson in the statement. 

Formed in 2000, Cheyne Capital is one of Europe’s leading alternative investment managers. The company invests across the capital structure in six main areas of expertise: Real Estate Debt, Social Property Impact, Corporate Credit, Convertible Bonds, Event Driven and Equities.  The company has some $17 billion in assets under management primarily for pension funds, insurance companies, sovereign wealth funds, endowments, banks, funds of funds and other financial institutions. 

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