Independent Asian credit manager Double Haven has collected $111 million from a US institutional investor for its Double Haven Asia Absolute Bond Fund. The liquid investment grade credit strategy takes a long / short approach to Asian bond markets.
“When CalPERS selected Double Haven as its Asian credit investment manager more than a year ago it was a significant event for us. With another US-based institutional investor making such a sizeable allocation, it further validates the investment opportunity, strategy and team,” said Double Haven chief executive Greg Donohugh.
CalPERS invested $100 million with the manager in December 2013.
Asian banks are being disintermediated as savings in the region shift out of low yielding deposits which, combined with increased bank regulation, is driving increased public bond volumes and private debt issuance in Asia, the firm said in a statement.
“There are still many misconceptions about the Asian US dollar bond market, resulting in a variety of opportunities. Fears around local currency weakness and GDP growth are overshadowing the fact that Asian investment grade credit continues on a path of de-leveraging, offering a premium return to similar rated US dolllar credit and a shorter average duration of two years,” added Darryl Flint, Double Haven’s founder and chief investment officer.
Double Haven is a large independently owned Asian credit specialist. The firm invests across public and private credit instruments and strategies including distressed, private lending, investment grade, high yield, derivatives, local currency, convertible bonds and loans.