CQS, the largest of credit focused hedge funds, is all set to increase its standing in equity markets which have been on an uninterrupted boom since the beginning of this year, at least in US, reports Sam Jones for Financial Times.
CQS Fund Performance
CQS ABS Feeder Fund, with $2.5 billion under management, was up 5.56 percent YTD at the end of April. The fund works on credit long/short strategy. CQS Directional Opportunities Feeder Fund with $2 billion AUM is a multi-strategy fund managed by CQS founder, Michael Hintze. The flagship fund is reported to be up 7.6 percent YTD. The Directional Opportunities fund was among the best performers of last year, returning +35.8 percent in 2012.
No Shortage Of Investments And Experience
The hedge fund is looking to launch a CQS Equity Long/Short Fund, under the management of David Morant. Morant, a former portfolio manager of SAC Capital, already is in charge of the firm’s European equities team. CQS has had no lack of new investments, in fact in the past it had to shut down its multi-strategy and subprime focused funds to new investments to maintain a manageable size. So it is likely that the new fund will have no trouble in recruiting investments. CQS has had a European equities team in place since 2007.
European Equity Shorts of CQS
CQS UK has maintained shorts in a couple of British and German companies. CQS has a 1.2 percent short position in ITV plc (LON:ITV), a UK based television network. The firm had covered shorts in Carnival plc (NYSE:CUK) (LON:CCL) profitably in March, Carnival plc (NYSE:CUK) (LON:CCL) is cruise tourism company. In Germany, CQS has short bets on TUI AG (ETR:TUI1), another travel company and TAG Immobilien AG (ETR:TEG) (FRA:TEG), a real estate developer which has declined 7 percent YTD.