Hedge Fund News From HedgeCo.Net

Hewitt Shareholders Nominate Hedge Fund As $243 Million CLO Manager

New York (HedgeCo.net) –  Texas hedge fund adviser Highland Capital Management and it’s affiliate, Acis Capital Management, L.P.,  is now the successor Collateral Manager of Hewett’s Island CLO I-R Ltd, with approximately $243 million of assets under management.

Alternative investment specialist, Acis, assumed the role as Hewett’s collateral manager after a majority of the subordinated noteholders nominated the firm for the role.

“We continue to be strong proponents of the collateralized loan obligations (CLO) markets,” said Josh Terry, Portfolio Manager at Acis. “We are honored by our selection as manager of this CLO and believe we are well positioned to improve its credit quality and performance.”

The transaction, completed July 18, raises Highland and its affiliates’ total CLO assets under management to $17.5 billion, comprised of 27 different CLO vehicles.

Investopedia explains Collateralized Loan Obligation – CLO
Collateralized loan obligations are the same as collateralized mortgage obligations (CMOs) except for the assets securing the obligation. CLOs allow banks to reduce regulatory capital requirements by selling large portions of their commercial loan portfolios to international markets, reducing the risks associated with lending.

Editing by Alex Akesson
For HedgeCo.net
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