London-based RWC Partners has launched a diversified return fund following the hiring of senior members of multi-strategy specialists Agilis Investment Management.
The diversified returns team, led by Clark Fenton along with colleagues Charles Crowson and Praveen Kanakamedala, aims to “harness the best elements” of alternative investment management in the strategy.
The RWC Diversified Return Fund focuses on the credit cycle and has the remit to invest in non-conventional structures to capture “idiosyncratic” returns across the full market cycle, whilst exploiting opportunities in periods of market dislocation.
At launch, the fund’s positioning reflected a late cycle credit expansion. According to RWC, the investment team believes this has the potential to impact equity volatility and companies’ abilities to service high debt levels.
Fenton said: “A rapidly strengthening dollar and forced Federal Reserve intervention in the overnight repo market in September suggests that Q4 (fourth quarter) may bring a repeat of the liquidity issues which faced the market in Q4 2018.
“As such, the fund is entering the final quarter of the year with peak exposure to moves higher in equity volatility and wider in credit spreads.”
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