You are currently viewing the United States website Institutional website. You can change your location here or visit other RBC GAM websites.

Welcome to the RBC Global Asset Management site for Institutional Investors

In order to proceed to the site, please accept our Terms & Conditions.

This RBC Global Asset Management (U.S.) Website is intended for institutional investors only.

For purposes of this Website, the term "Institutional" includes but is not limited to sophisticated non-retail investors such as investment companies, banks, insurance companies, investment advisers, plan sponsors, endowments, government entities, high net worth individuals and those acting on behalf of institutional investors. The Website contains information, material and content about RBC Global Asset Management (collectively, the “Information”).

The Website and the Information are provided for information purposes only and do not constitute an offer, solicitation or invitation to buy or sell a security, any other product or service, or to participate in any particular trading strategy. The Website and the Information are not directed at or intended for use by any person resident or located in any jurisdiction where (1) the distribution of such information or functionality is contrary to the laws of such jurisdiction or (2) such distribution is prohibited without obtaining the necessary licenses and such authorizations have not been obtained. Investment strategies may not be eligible for sale or available to residents of certain countries or certain categories of investors.

The Information is provided without regard to the specific investment objectives, financial situation or particular needs of any specific recipient and does not constitute investment, tax, accounting or legal advice. Recipients are strongly advised to make an independent review with an investment professional and reach their own conclusions regarding the investment merits and risks, legal, credit, tax and accounting aspects of any transactions.

Accept Decline

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 Fixed Income Team'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 BlueBay Fixed Income 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.

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

November 2011
Primary benchmark
No benchmark
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

body content

Accept Decline