AllianceBernstein has launched an alternative Ucits fund which aims to offer investors lower market correlation by tapping opportunities in the global credit sector, Citywire Global can reveal.
The AllianceBernstein Credit Alpha Portfolio fund is a Luxembourg-domiciled global long/short credit fund run by lead manager Sherif Hamid, who will also be supported on the fund by Ashish Shah, Ivan Rudolph-Shabinsky, Robert Schwartz and the group’s head of high yield Gershon Distenfeld.
Speaking to Citywire Global about the launch, Hamid said: ‘We wanted a strategy that was much less beta sensitive and interest rate sensitive. It is not a market neutral approach, but it limits the beta exposure.’
‘It will invest across the rating spectrum from AAA to CCC and in securities from the US, Europe and Asia.’
The fund's portfolio will contain between 100-125 holdings across its long and short books, and will predominantly invest in corporates, with some exposure to securitised assets to a maximum of 20% of the fund’s portfolio.
Hamid said the fund’s investment approach will be to focus mainly on relative value plays. In terms of his current exposure he said he is treading cautiously on mining and metals names, but he is finding good mispricing opportunities in the high yield US energy sector.
There are also some emerging market sovereign bonds that are offering some interesting relative value opportunities, he added.