King Street Capital Management produced a return of 1.93% gross for investors for three months ended September 30, 2016. After the fees, the fund returned 1.6% net. Unaudited net gains for the nine months ended September 30 are 3.02% according to the fund’s third quarter letter to investors, a copy of which has been reviewed by ValueWalk.
King Street, the large and notoriously secretive credit hedge fund founded in 1995 by Brian J. Higgins and Francis Biondi, profited in the third quarter from its long bets on stressed/distressed credit. Directional long bets on these types of credit earned the fund 1.72% net for the period. Equity long bets cost the fund 0.04%, and short bets cost 0.06% for a net return...
