Harvard Cub Regiment Said to Report First Gain in MonthsSabrina Willmer
Regiment Capital Advisors, the $4 billion firm started by former junk-bond investors from Harvard University’s endowment, posted its first positive month since June as energy holdings bounced back.
The Boston-based firm, led by Mark Brostowski and William Heffron, gained 2.1 percent in its credit fund in February, after a 0.5 percent decline in January, according to a person with knowledge of the matter, who asked not to be named because the information is private.
Regiment Capital, which focuses mostly on high-yield debt, lost 8.8 percent last year as falling oil prices hurt its energy and transportation investments. Returns deteriorated when oil prices plunged last year, rattling the high-yield bond market and raising the specter of defaults among oil and gas drillers.
High-yield bonds tied to energy companies jumped 5.5 percent last month as oil prices stabilized and investors including GSO Capital Partners and Carlyle Group LP signaled they were willing to provide fresh capital to the industry.
U.S. crude futures, after interrupting their slide with a 3.2 percent gain in February, are trading near the lowest price in six years on estimates that U.S. crude inventories extended a record.
Regiment was started in 1999 by Tim Peterson with four other professionals from Harvard Management Co. Peterson stepped back last year from day-to-day management of the firm, leaving Brostowski and Heffron to oversee the investment strategy.
Diana Pisciotta, a spokeswoman for Regiment at Denterlein, declined to comment on returns.