Investment boutique Muzinich & Co. has launched a total return European credit strategy, the company has announced.
The Muzinich European Credit Alpha fund will be managed by Citywire A-rated Thomas Samson, who manages several funds at the firm including the Muzinich European High Yield fund, alongside Hugo Squire.
The fund aims to generate attractive mid-to-high single-digit returns over the course of a full market cycle.
The L/S total-return credit strategy seeks to predominantly invest in European credit markets in strong conviction trades.
The strategy is based on three main books: core long; arbitrage; and an overlay portfolio. It aims to use a diverse range of instruments including cash instruments, floating and fixed-rate instruments, loans and derivatives.
Commenting on the launch, Samson said: ‘We have a constructive outlook for credit for the years ahead. However, with current corporate credit spreads at low levels and rates beginning to move upwards, we believe a L/S strategy gives us the flexibility necessary to deliver attractive returns.’
The fund is currently available to investors in Ireland, the UK, Switzerland, Germany, Belgium, France and Luxembourg. With further registrations set to be added throughout 2018.