This Hedge Fund Giant Outperformed While Cutting Exposure And Risk In Q1 Amid “Dismal (And Occasionally Baffling) Valuation”

The Canyon Value Realization Fund gained 6.19% for the first quarter and another 1.62% for last month through Apr. 26. The fund recorded gains in all the major asset classes it invested in during Q1.

Liquidity provider

The Canyon team cut the fund's "level of investedness" 9% in the six months before the fourth quarter of 2018 and then another 4% in October and November. They said accumulating all that cash enabled them to "act as a liquidity provider rather than a liquidity seeker when the markets entered freefall." In December they made large purchases of corporate credit securities which ended up being...