Alternative credit investment funds are continuing to add gains this year, following positive outcomes in the first half of this year, according to a Gapstow performance report.
The New York City-based advisor for alternative credit opportunities analysed the average performance of 200 investment funds with similar alternative credit strategies.
It found that in the third quarter of this year, alternative credit funds produced positive results, in line with broader credit markets.
Despite US policy uncertainty – driven by ongoing tariff and budget turmoil – and weaker labour statistics, US credit markets ended the quarter up on a total return basis, Gapstow said.
Read more: Alternative credit interval funds returned 10pc in 2024
Within credit fund peer groups, only listed business development companies (BDCs) recorded losses (-5.6 per cent) in the third quarter, but these were partially offset by positive performance of mortgage real estate investment trusts (+4.1 per cent), which had the highest return rate of all twelve peer groups assessed.
Corporate convertible bonds and structured credit are year-to-date the best performing peer groups, recording total returns through 30 September of 6.4 per cent and 6.3 per cent respectively.
Read more: Last year clocked up 33 acquisitions of alternative credit managers
