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BlueBay is a leading specialist active manager of fixed income

We have an established track record of innovation and performance in alternative investments across both public and private debt markets.

We have an established track record of innovation and performance in alternative investments across both public and private debt markets.

BlueBay sits at the convergence point between traditional and alternative asset managers, with a heritage in managing hedge funds and alternative investments.

Our innovation timeline
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2001

 

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2017

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BlueBay was established at the advent of the Euro to capitalise on inefficiencies in the growing pan-European corporate bond market, and in response to the evolving opportunity in emerging market debt.
Launched flagship European credit long-short hedge fund strategy and the first long-only emerging market debt fund in UCITS format.
With a focus on capital preservation BlueBay pioneered the use of credit default swaps in traditional benchmark funds, applying short positions and other hedge fund investment techniques in both long-only and long-short strategies.
BlueBay launched emerging market corporate strategy to capitalise on pricing anomalies in a largely under-researched asset class.
Launched sovereign debt strategy to capitalise on new total return opportunities as a result of European peripheral stress.
Established European private debt platform in response to European bank deleveraging and retreat from corporate lending.
BlueBay launched a financial capital bond strategy to capitalise on the new sub-asset class of bank contingent capital debt instruments.
Launch of a unique environmental, social and governance (“ESG”) high yield strategy to meet the growing demand for ethical investment strategies.

Left Speech Mark More than half of our clients consider us to be pioneers or early adopters Right Speech Mark

- Spence Johnson survey of BlueBay clients, 2017

Our approach

We believe in offering a different perspective on fixed income for investors.

 

BlueBay works to identify new and emerging asset classes, launching niche or alternative strategies to capitalise on, what we believe will be, long term structural market or asset class developments, while also seeking to capitalise on market dispersion.

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Heritage

Our hedge fund heritage is embedded across our investment teams and processes.

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Structure

Formalised institutional process that does not compromise flexibility or dynamism.

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Style mix

We believe that volatility should be embraced as a key source of excess returns in active fund management.

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Performance culture

Team approach formalises macro directionality and idiosyncratic risk exposures.

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Portfolio

Excellence in portfolio construction thanks to unique resources in both credit and macro.

Our capabilities

Our hedge fund strategies are designed to generate either uncorrelated, non-directional performance at all stages of the credit cycle or to capture dispersion and opportunities at particular points in the credit cycle.

 

We believe both investment approaches are valuable to our clients, either in fund structures or as separately managed accounts.

Range of alternative fixed income strategies
Private
Debt
Financial
Capital Bond
IG Absolute
Return Bond
Global
Credit Alpha
Long Short
Absolute
Return
Event
Driven
Credit
Global
Sovereign
Opportunities
EM
Unconstrained
EM Credit
Alpha
Private Debt
  • Leading European player in Private Debt, with over €7.5 billion of AuM across three funds
  • Over €4.0 billion committed across about 70 transactions to date
  • Completed deals with more than 35 different private equity sponsors across 9 geographies
  • Experienced team of 16 investment professionals with 12 years’ average experience
  • 0.0% loss ratio across all funds to date
Financial Capital Bond
  • The fund seeks to achieve a total return of 6–9%
  • The fund invests at least 50% of its net assets in subordinated debt securities issued by Financial Institutions
  • Subordinated debt securities include, but are not limited to Tier 1 and Tier 2 contingent capital securities (CoCos) and US perpetual preferred stock
  • The fund may invest in fixed income securities of any rating in addition to unrated debt securities
IG Absolute Return Bond
  • The Fund seeks to exploit a range of alpha sources to generate a return
  • The Fund invests across global interest rates, sovereign and non-sovereign credit and across currencies, utilising the full range of available cash and derivative securities
  • The Fund may employ economic leverage through the use of derivative instruments but no financial leverage is permitted in line with UCITS regulation
Global Credit Alpha Long Short Absolute Return
  • A macro-thematic, low beta global long-short credit strategy focusing on corporate and sovereign credit
  • Leverage on best ideas from BlueBay’s investment teams in liquid corporate and sovereign credit alpha
  • The strategy seeks to perform in all market conditions and adopts a beta-neutral long/short investment strategy. It uses a combination of bottom up investment ideas, thematic investments and relative value
Event Driven Credit
  • The focus is on identifying fundamentally mis-valued securities by the broader market
  • The Fund invests in a variety of short-to-medium term stressed, distressed and high yield credit opportunities (6–18 months average)
  • Selects and invests in single-name impaired corporate debt with a clear path to exit. Actively works towards exits through specific events or secondary market
  • Diversified portfolio of liquid stressed, distressed and special situation opportunities through rigorous process of deep fundamental analysis and stringent downside risk management
Global Sovereign Opportunities
  • The fund seeks to achieve attractive risk-adjusted returns of cash plus 5–7% from a macro thematic, global government bond strategy trading G10 rates, local markets, sovereign credit and currencies
  • An actively traded and highly liquid portfolio that aims to minimise downside risk during periods of market volatility
EM Unconstrained
  • The Fund seeks to capitalise on the dispersion and asymmetry across the EM universe using bottom-up fundamental analysis informed by top-down macroeconomic themes. The Fund provides a flexible allocation between sovereign hard currency, sovereign local currency and corporate debt whilst utilising derivative instruments across EM
  • High conviction views are expressed through a combination of bottom-up fundamental, relative value and directional trades. Positions are generally implemented with a view to hold for 1 to 3 months. Short positions are either expressed solely through derivatives (e.g. interest rate swaps, FX forwards, credit default swaps)
EM Credit Alpha
  • To generate uncorrelated, non-directional performance at all stages of the credit cycle
  • Range of short/long positions in a combination of strategies including relative value, event driven, re-structuring/distressed opportunities
  • Market-neutral strategy by design, exhibiting low correlation (<0.3 on average) to major market indices, both EM and DM
  • Sources of return incorporate six sub-strategies or “alpha sleeves” with exposure to approx. 60 idiosyncratic credit opportunities at any one time (2-5% NAV)

Insights

Liquid alternatives
Liquid alternatives

We examine how the economic developments of the past 30 years have changed the investment landscape, giving rise to alternative strategies.

Evolution and reversals
Evolution and reversals

We examine how the economic developments of the past 30 years have changed the investment landscape, giving rise to alternative strategies.

Liquidity: Binary to continuum
Liquidity: Binary to continuum

Liquidity is key when running alternative funds. We dig into the topic, from the levels offered to investors to the terms agreed with leverage providers.

Contact us

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