Mauboussin Moves To BlueMountain As Firm Moves To Cash

BlueMountain Capital, the $23 billion private absolute return investment firm is preparing itself for its significant bout of market volatility which will throw up plenty of fresh opportunities according to a recent letter to shareholders.

The BlueMountain Credit Alternatives Fund traditionally holds around 10% to 12% of its assets in cash but recently doubled its cash weighting to around a quarter of assets under management to position the fund for a likely uptick in financial market volatility.

The $7.2 billion vehicle is gearing up to buy asset and mortgage-backed bonds above everything else as it believes that these assets will offer the most attractive opportunities when the selloff finally emerges. The firm cites a number of potential catalysts in its...