WEST PALM BEACH, FL (www.hedgeco.net) – Barclays Global Investors, {BGI} has announced it is launching a new $1.84 billion hedge fund firm; such decision was aimed at profiting from the newopportunities arising in the credit markets. The credit markets have become very volatile, and generally such volatility may give rise to new trading opportunities. According to BGI, hedge funds canalso exploit the general drop in confidence by betting on a drop in debt prices through a shorting strategy.
Andrew Winn, head of European Credit at BGI said, �Long-short hedge funds will benefit from market volatility and a spread widening environment.� Winn also explained that developments in the credit markets may lead to trading opportunities in complex, cross-border deals, aimed at exploiting the price differentials in the credit markets.
Winn added, �Within the Credit markets, we may for example short European versus U.S. Companies or short U.S. auto companies versus Korean industries.� The new fund comes handy in this time of market instability as diversification has become an essential ingredient of modern portfolio construction. BGI has an existing hedge fund being managed from San Francisco already, and Winn explains that the new European hedge fund would complement that fund.
BGI did not provide details about the fee structure or the minimum investment requirements. The firm manages over $35 billion in total investor assets.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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