Skip to content
Subscriber Only

Blackstone Leads Hedge Funds Attracting Bond-Rally Bears

Hedge funds that seek to profit from credit markets without wagering on the direction of prices are attracting the most new money in five years as skepticism mounts about whether a four-year rally in bonds can continue.

Funds that bet on both gains and losses in credit attracted $12.6 billion of deposits in the three months ended Sept. 30, the most since the period ended Dec. 31, 2007, according to HFR. Blackstone Group LP raised $4.05 billion during the period for its debt unit, which includes so-called long-short funds. Panning Capital Management, which was founded by Kieran Goodwin this year, started such a fund on Nov. 1 with $500 million.