Highbridge closes dislocation fund

J.P. Morgan Asset Management’s Highbridge Capital Management announced its closing of the Highbridge Convertible Dislocation Fund with more than $2 billion in assets. The asset amount includes approximately $685 million in equity commitments. The fund was raised in response to the convertible market dislocations that began in March and Highbridge is investing in relative value and event driven convertible instruments with a focus on North America and Western Europe. Officials began investing for the fund in June and today are roughly 50% invested in a strategy they describe as being consistent with Highbridge’s longstanding commitment to relative value alternative investment strategies. “The convertible market dislocation that we observed earlier this year provided the Fund substantial capacity to take advantage of investment opportunities across North America and Western Europe,” said Jason Hempel, co-CIO of Highbridge. “While convertible market valuations have rebounded, primary market issuance, which now exceeds $100 billion in 2020, continues to be a source for new ideas and a driver of secondary market trading opportunities.” The fund has the leeway to also invest in opportunistic investment vehicles to capture market dislocation events. New York-based Highbridge also can lean on the larger J.P. Morgan Global Alternatives platform that at $145 billion spans real estate, infrastructure, transportation, hedge funds, private equity, private credit and liquid alternatives. Convertible debt will likely remain an attractive capital market solution for many borrowers due to rising global equity markets, according to Jonathan Segal, co-CIO of Highbridge. Convertible notes offer flexibility to management teams in a period of uncertainty, he added. “We look forward to continuing to pursue these investments on the fund’s behalf and we greatly appreciate the support of our investors and their commitment to the fund during the COVID-19 pandemic,” Segal said. In mid-2019, Highbridge announced it would refocus its business around credit strategies and began to wound down its multi-strategy fund. As of the end of 2019, the firm had $1.4 billion in assets under management.

Continue Reading With a Free Trial

Be an Alts Watcher

Subscribe to our mailing list and know first!

Mercer touts AUM growth

What ODD looks like through COVID-19 lenses

Related Articles

Marquette’s Kweku Obed on financial literacy and the search for yield that makes a difference

Connecticut taps K2 for HF risk mitigation strategy

Altimeter, Thiel buy SE Asia companies via SPACs

Maverix closes inaugural fund at $500m

Get our daily news digest in your inbox

Get our daily news digest
in your inbox