Canyon Capital Is Riding The Wave Of Increased M&A

Canyon Balanced Funds were up approximately 9.4% for the first six months of the year as all major asset classes in which they invest contributed positively to returns. In their August letter to investors, which was reviewed by ValueWalk, the Canyon team said idiosyncratic catalysts involving a variety of balance sheet transformation events drove their second-quarter performance.

Q3 2021 hedge fund letters, conferences and more

Canyon played a significant role in influencing many of those changes. The transformations included multiple restructurings, mergers and acquisitions, spinoff announcements, strategic financings, and other strategies.

Going forward, the Canyon team saw a large amount of embedded return to come via credit-specific alpha. They added that...