18/08/2010 Author: Elana Margulies

Anchor Capital grows out managed account

Anchor Capital, an Orange County, California-based advisor specialising in quantitative long/short high-yield bonds and long/short equity strategies, has launched a hedge fund structure from one of its separately managed accounts.

Last month, the firm debuted the Alteras Fund, an extension of one of its separately managed accounts, with 75% of the portfolio in alpha high-yield long and short securities and the remaining 25% in long/short equities. All the fund’s positions are index-based and highly-liquid. The offering, which has a 750m capacity, has no lock-up and 30-day liquidity.

“We launched the Alteras Fund to meet the demand for a private fund offering of our Alpha High-Yield separately managed account,” said CIO Eric Leake. “We think it’s an ideal time to be exploiting trends in high-yield corporate debt. As an asset class, high-yield corporate bonds provide the opportunity to capture rising and falling price trends, as well as a relatively high coupon, making them well suited for absolute return focused strategies.”

The separately managed account, which rolled out in April 2007, is up 2.6% YTD through July. Last year it returned 7.3%. In 2007 and 2008, it generated figures of 13% and 9.1%, respectively.

HFMWeek previously reported that Anchor Capital’s flagship hedge fund received an allocation from Optivest, a family office in Orange County, California.