, Columnist
CLOs Are the New Hedge Funds. Plan Accordingly.
The latest hot investment won’t be foolproof.
No guarantees these will keep on coming.
Photographer: Andrew Harrer/Bloomberg
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A number of hedge fund firms have a hot product. It’s not their hedge funds.
Och-Ziff Capital Management’s investors withdrew $418 million from its hedge funds in the second quarter. Total inflow of assets under management, however, were $1.2 billion, its largest increase in assets in four years. The firm’s hot product: collateralized loan obligations — a derivative debt investment that invests in leveraged loans and is a cousin of the type of funds that blew up in the housing bubble.