FREE

Investment Companies Roundup – April 2020

• Performance – Performance was led by alternative sectors with lower correlationto the broader market. A handful of hedge fund-sector companies had very good months, led by the Brevan Howard-feeder funds,  and . Macro-strategy hedge funds in particular tend to perform well through periods of market distress. Elsewhere, a near ceasing in commercial travel has severely impacted airlines, which in turn had a cascading effect on several listed widebody aircraft lessors;
• Discounts/premiums – Technology has been seen as comparatively resilient, helping to explain the narrowing in ‘s discount and a good month for as well. Elsewhere,  was one of the month’s best performers. Biotech is proving to be relatively resilient as well, benefitting .  suspended its dividend in late March, sending its shares sharply down. The rules that govern the CLOs it invests in are preventing income distributions. Meanwhile, The debt- structured finance sector company, , is likely to see loan payments delayed by mortgage holiday measures;
• Money in and out – There is no surprise in the lack of notable fundraising. Still, renewable funds continued to bring in the most capital, led by , and ; and
• Major news stories – suspended its dividend. Elsewhere,  updated on covid-19 and reaffirmed its 2020 dividend target. We also heard similarly from . Away from covid-19,  announced a manager change.