Canyon Capital is recession-ready as bond markets look vulnerable

The Canyon Distressed Opportunity Funds II reported gains from a post-reorganization gaming company during the second quarter. In their second-quarter letter to investors dated Sept. 30, which was reviewed by ValueWalk, the Canyon Capital team said the company was their biggest positive contributor after announcing its sale to a strategic acquirer. The deal included a bigger-than-expected cash component and plans to sell some of its properties to a post-reorganization gaming real estate investment trust. The hedge fund reduced its exposure during the increased trading volume and liquidity that followed the announcement about the transaction. The fund also de-risked the rest of its position with about two-thirds of the position turning into cash when the deal is consummated.

The biggest negative thematic contributors during the second quarter were the fund's offshore drilling credits, which declined as oil prices tumbled 23%.

Adjusting the portfolio

SORRY!

This content is exclusively for paying members. Access all of our content on including years of timeless investment news and in depth analysis for only a few dollars a month by signing up here while also supporting quality content and journalism, or learn more about our premium content here

If you are subscribed and having an account error please clear cache and then cookies if that does not work email support@valuewalk.com and we will get back to you as quick as humanly possible


Saved Articles
X
TextTExtLInkTextTExtLInk

The Life and Career of Charlie Munger

Charlie is more than just Warren Buffett’s friend and Berkshire Hathaway’s Vice Chairman – Buffett has actually credited him with redefining how he looks at investing. Now you can learn from Charlie firsthand via this incredible ebook and over a dozen other famous investor studies by signing up below:

  • Learn from the best and forever change your investing perspective
  • One incredible tidbit of knowledge after another in the page-turning masterpiece of a book
  • Discover the secrets to Charlie’s success and how to apply it to your investing
Never Miss A Story!
Subscribe to ValueWalk Newsletter. We respect your privacy.

Congrats! Are you a smart person?

We have an exclusive targeted for being a sophisticated and loyal reader.

Sign up for ValueWalkPremium today and get our exclusive content for 35% off.

Use coupon code vip19 or click on the button below

Limited time offer only ENDS 12/31/2019 or after next 25 subscribers take advantage whichever comes first – please do not share this discount with others

 

0