When investors think about credit hedge funds, muni hedge funds are often overlooked – creating an uncrowded marketplace full of potential. Prime Services’ David Shalom shares insights about today’s muni market investors and opportunities for generating attractive returns.
At BNY Mellon | Pershing, our Capital Introductions group works with institutions and with private wealth investors to help connect them with municipal bond hedge fund managers.
Consideration 1: The muni hedge fund opportunity
When investors think about credit hedge funds, they often think about fixed income, corporate credit, and sovereign rates trading strategies – so muni hedge funds often go overlooked and the space is relatively uncrowded. As a result, there are opportunities for today’s muni hedge fund managers to potentially generate attractive returns.
Consideration 2: Do you fit the investor profile?
There are three types of investors in today’s muni markets:
Consideration 3: Portfolio diversification
The Prime Services team at Pershing provides financing to municipal bond investment managers. Our clients use leverage to amplify returns on the upside and the downside.
If you’re thinking about launching a municipal bond hedge fund or want to learn about investing into muni hedge funds, please reach out to our Prime Services team at Pershing.
Published by The Bond Buyer, June 13, 2019
David Shalom is a Vice President for the Prime Services division of BNY Mellon | Pershing. David leads our capital introduction team in the northeast and midwest United States, assisting clients in their capital raising efforts through targeted introductions to institutional allocators and private wealth investors.