Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Deja Avenue? Another Junk Bond Fund Is Bleeding Not Rated 0.0 Email Routing List Email & Route  Print Print
Thursday, December 17, 2015

Deja Avenue? Another Junk Bond Fund Is Bleeding

News summary by MFWire's editors

Another junk bond mutual fund is bleeding. This isn't Third Avenue's now-infamous Focused Credit Fund all over again, or is it?

Marc Lasry
Avenue Capital Group
Chairman, Chief Executive Officer, Co-Founder
Katherine Burton of Bloomberg highlights the recent woes of the two-star, $821.2-million, three-year-old Avenue Credit Strategies Fund. Per Morningstar's estimates, the Avenue Credit Strategies Fund just suffered $206 million in net outflows and a loss of five percent, all in the first 14 days of December. The fund is down 11 percent year-to-date, and as recently as November 2014, the fund had $2 billion in AUM.

Last week New York-based Third Avenue began shutting down its $789-million Focused Credit Fund. That move that has triggered an avalanche of media coverage and attracted both regulatory and litigious interest.

Marc Lasry, chairman/CEO and co-founder of New York-based Avenue Capital Group, says that the Avenue Credit Strategies Fund is not the Third Avenue Focused Credit Fund all over again.

"We have a well-positioned portfolio and our illiquid assets are in the single digits," Lasry reportedly told Bloomberg.

Yet the two high yield funds have more in common than just similar branding and addresses on the east side of midtown Manhattan. Per his Avenue Capital Group bio, senior PM Jeff Gary worked as a PM at Third Avenue prior to joining Avenue Capital Group in 2012 and launching its Avenue Credit Strategies Fund. At Third Avenue, Gary launched none other than the Third Avenue Focused Fund back in 2009, co-PMing it alongside Tom Lapointe. Gary left Third Avenue five years ago, Lapointe still PMs the Third Avenue Focused Fund.

While Third Avenue Management is primarily a mutual fund shop specializing in value equity investing, Avenue Capital Group is primarily a private equity and hedge fund shop specializing in distressed debt. The Avenue Credit Strategies Fund is Avenue Capital Group's only open-end mutual fund (it also runs a similar, $168MM closed-end fund), which amounts to less than one-twelfth of its $12.7 billion in AUM as of November 30, 2015. 

Edited by: Neil Anderson, Managing Editor


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2025: Q3Q2Q1
2024: Q4Q3Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly


    Sorry, no records in the database matched your search parameters. Clich back and try again.



  1. Nicsa webinar - New research by Alex Edmans and the Diversity Project - The Power of diverse thinking: How the best teams make decisions, July 1
  2. MFDF Director Discussion Series - Open Forum, July 9
  3. MFDF webinar - Mid-Year Tax Update for Registered Investment Companies, July 10
  4. MFDF Director Discussion Series - Open Forum (Philadelphia), July 15
  5. 2025 MMI Women in Advisory Solutions Forum, Jul 15-16
  6. Nicsa webinar - How Trusted GenAI is Transforming Data Access in Asset Management, July 16
  7. MFDF webinar - M&A and Consolidation in Asset Management, July 16
  8. MFDF webinar - ETF Conversions, July 17
  9. MFDF Director Discussion Series - Open Forum (New York), July 22
  10. MFDF Ask Anything webinar - AI Edition, July 24
  11. MFDF webinar - Use of Derivatives by RICs, July 29
  12. MFDF Director Discussion Series - Open Forum (Columbus, Ohio), August 20
  13. Samfund Soiree Boston 2025, August 21
  14. MFDF webinar - The Audit Committee Chair's Guide to Balancing Duties and Emerging Issues, September 3
  15. ICI ETF Conference, Sep 8-10
  16. Nicsa webinar - Reimagining Reconciliation: AI, Regulation, and Capital Markets Transformation, September 10
  17. MFDF webinar - Series Trust Funds - Compliance and Board Reporting, September 10
  18. MFDF In Focus - Board Oversight of DEI in Current Landscape, September 11
  19. MFDF webinar - MFDF 15(c) White Paper Webinar Series: Part 4 – Enforcement Action Takeaways, September 16
  20. MFDF webinar - Latest in Closed-End Funds Litigations, September 23
  21. MFDF webinar - Fixed Income Insights: Navigating Market Trends & Opportunities, September 24
  22. MFDF webinar - Risk Management Essentials for RICs and Boards, September 29
  23. MFDF webinar - Diligent - Tools for Fund Board Book, October 1
  24. 10th annual Fuse Forum, October 8
  25. MFDF webinar - Essential Strategies in Board Oversight of Operational Risk Management, October 14
  26. 2025 MMI Annual Conference, Oct 15-17




©All rights reserved to InvestmentWires, Inc. 1997-2025
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use