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Brigade Capital Said to Return 23% in 2016 as Credit Roars Back

  • Main hedge fund at Morgan’s firm rebounds from 2015 decline
  • Firm’s newest pool, focusing on energy, surged 34% last year

Brigade Capital Management’s main hedge fund returned almost 23 percent last year as the market for corporate credit snapped back from a turbulent 2015, according to a person with knowledge of the returns.

The firm’s $2.6 billion Brigade Leveraged Capital Structures Fund, a long-short fund, gained on bets involving the debt of iHeartMedia Inc., the radio broadcaster that’s been embroiled in multiple fights with creditors, Toys “R” Us Inc., BMC Software Inc. and Caesars Entertainment Corp., according to the person, who wasn’t authorized to speak publicly about the returns. Brigade’s $2.3 billion opportunistic vehicle also gained nearly 23 percent on similar investments, plus those involving Sprint Corp. and Advanced Micro Devices Inc.