Kapstream’s Absolute Return Income Fund achieved a small gain of 0.77% in November bringing the year-to-date cumulative performance to positive 6.86%.
Kapstream employs a fixed income strategy and aims to generate absolute returns over multiple business cycles by incorporating high quality/high conviction trades while taking into account the global macroeconomic view and variables such as duration, yield curve and volatility which support the research and analysis.
The Fund Manager outlined some key themes for 2009 including that rates will be low for a long time and investors should shift focus from duration to high quality, retailers will limp through Christmas, oil will continue to fall, the US auto industry will get bailed out, and corporations (especially banks) will continue to issue government guaranteed debt (i.e. bonds) via the Fed acting as the new monoline insurer.
