Ex-GLG manager Bramshill launches liquid alts strategy

Bramshill News

The fund will invest in bonds, including high-yield and investment-grade

By Sophie Segal

$277m Bramshill Investments will launch a new credit mutual fund with $40m next week, Alt Credit Intelligence understands.

The fund, which is expected to go live Friday, will be a mutual fund format of the firm’s Income Performance Strategy which is comprised of separate managed accounts. Founder and CIO Art DeGaetano and portfolio manager Derek Pines will run the fund.

Historically, the Income Performance Strategy has been comprised of separate managed accounts for family offices and RIAs. According to a source familiar with Bramshill, the firm is launching the mutual fund due to demand from investors seeking a fixed income product that requires lower investment minimums.

According to a tear sheet obtained by Alt Credit Intelligence, Bramshill’s Income Performance Strategy was up 2.65% for 2015, while the average credit fund was up 1.98% according to data released by Preqin last month. Bramshill offloaded a lot of its high-yield positions last May.

The strategy, which was launched in 2009, was up 0.58% YTD as of 29 February and has had an annualised return of 8.36% since inception. The strategy is focused on fixed income products such as high-yield bonds, investment-grade corporate credit, municipals and treasuries as well as preferred equity.

In February 2016, firm increased its investment-grade corporate exposure from 13% to 26% and its high-yield exposure from 3% to 13%.

Bramshill was founded by DeGaetano in 2012, after spinning out the firm’s core investment strategy and existing assets from GLG Partners where he had been a senior portfolio manager since 2007. Prior to joining GLG Partners, DeGaetano was a credit trader at RBS and Bear Stearns.

The firm has 10 employees based in its New Jersey offices.