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The BlueBay Global Credit Alpha Long Short Strategy aims to generate positive risk-adjusted returns by seeking to exploit dispersion, asymmetry and volatility in the market.

Strategy overview

  • The investment universe includes cash and derivative instruments, corporate, sovereign and rate markets primarily in the investment grade space.
  • Our rigorous, proprietary research of issuers and individual securities seeks inefficiencies in the market to identify where we believe the market has mispriced risk/return, indicating potential for asymmetric return profiles. By accessing our full toolkit of instruments, we have the ability to implement a range of long and short positions.
  • The strategy offers diversified and uncorrelated exposure in an environment of divergence in global rates and growth.

Our approach

Investment strategy

  • A long-short discretionary credit strategy investing in BlueBay’s best ideas in liquid corporate and sovereign credit across global markets.
  • The strategy seeks to perform in all market conditions and adopts a beta-neutral long/short investment strategy. It uses a combination of bottom up investment ideas, macro thematic investments and relative value trades.
  • Targets a low correlation to credit, equity, emerging and developed markets
  • Strategy permitted to take short positions in order to capitalize on negative market views or exercise relative value pairs trades
  • Invests in smaller deal size opportunities
  • Concentrated portfolio, average position size varies between 5-15% of portfolio and held for 1-3 months
  • Very active and agile portfolio, with strong risk control framework
  • There is no natural bias to being long credit. Individual risk exposures are based on well-researched, medium-term structural investment decisions.
  • The team believes that taking into account environmental, social and governance (ESG) factors is an important aspect of the investment process. As such, ESG integration – the systematic review of material ESG investment risks – is applied across all our strategies. BlueBay has been a UN-PRI signatory since 2013

Global investment grade expertise

  • Benchmark aware but benchmark agnostic – alpha focus
  • Very experienced team/analysts with a long/short investment mindset
  • Strong focus on capital preservation
  • Tends to perform best in negative risk markets, when issuer performance dispersion is high
  • Extensive users of credit default swaps - both index and single name - to most efficiently implement investment ideas
  • Hedge fund skills and tools within a disciplined investment process

Additional information

Inception
November 2011
Primary benchmark
No benchmark
Vehicle
Separate Account, Cayman

Investment team

BlueBay Fixed Income team

Fixed income specialist providing progressive investment solutions

Connect with our team to learn more

Contact us

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