Palmer Square's Disaggregation of Strategies is Complete: What's Next?
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Friday, January 16, 2015

Palmer Square's Disaggregation of Strategies is Complete: What's Next?

Palmer Square Capital Management [profile] just launched its sixth mutual fund. Next up could be high yield municipal bond or distressed credit funds.

"That's not a capability that we have today," Palmer Square president Chris Long says of high yield muni bond investing. "It has a lot of similarities ... Folks that do well in high yield municipal bonds are ones [like Palmer Square] that bring a corporate credit perspective to it."

As for distressed credit, it's not the right time for the Mission Woods, Kansas-based Montage Investments [profile] boutique to get into the space, Long tells MFWire.

"We're not at the point in the credit cycle where the opportunities are really deep there," Long says. "At some point distressed credit will obviously be a wonderful opportunity to offer clients."

Long says that he continues to look for "additional strategies on the periphery," strategies that fit Palmer Square's approach. He's open to both developing new strategies and lifting out existing teams to launch such strategies.

As for Palmer Square's latest mutual fund, the Palmer Square Long/Short Credit Fund, it is the fifth and final strategy that the boutique has sort of spun out from its flagship, multi-strategy credit fund, the Palmer Square Absolute Return Fund. Palmer Square launched the long/short fund in November, after previously launching standalone funds utilizing the absolute return fund's component opportunistic credit, unlevered convertible bond arbitrage, long-only high-yield credit, and catalyst- or event-driven strategies.

"It was really the culmination of a product development effort that we started in 2012," Long says.

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