This major credit fund struggled under exposure to CLOs and PG&E losses

The Sound Point Credit Opportunities Fund was down 2.36% net in October, underperforming the HFRI Event Driven Index's 0.72% gain. The Credit Suisse High Yield Index was up 0.18% for the month, while the Credit Suisse Leveraged Loan Index was down 0.49%. Year to date, Sound Point is down 1.46%.

In their October performance update, Sound Point management said performance in credit was mixed during October due to the beginning of earnings season, ongoing trade talks with China and an interest rate cut. Defaults in distressed debt increased last month, reaching five defaults in $7.6 billion worth of bonds and loans. They...