YCAP rebrands HY fund
Luxembourg-based credit specialist YCAP has renamed its YCAP High Yield fund to YCAP High Yield Extensus Fund, in a bid to reflect the funds altered investment concept.
The fund, which aims to pursue an unconstrained, value-driven investment approach, has now expanded its investment universe to include Credit Default Swaps (CDS).
The fund’s portfolio manager Olga Dubko (pictured) can now implement long- as well as short-CDS strategies, depending, amongst others, on the target, relative value or obligor quality.
“These strategies provide a good opportunity to exploit market inefficiencies. They also prevent from forced selling, offering certain protection against bear markets. Furthermore, CDS strategies allow to counterbalance the selling tendencies in bond markets, thus representing a partial hedge of the portfolio“, explains Dubko.
Dubko has been responsible for the group’s high yield investments since the inception of YCAP in 2011.
In addition to the broadened investment universe, the funds’ volatility will be limited at 7% with an internal warning of 6.5%. YCAP aims to insure the volatility limit through reduction of the bond positions with the highest contribution as well as buying of CDS protection for the most volatile names.