Algonquin Capital announces launch of Algonquin Debt Strategies fund

By Tali Rackner

Norfolk, Va., Feb. 2 – Algonquin Capital Corp. announced the launch of the Algonquin Debt Strategies fund, according to a press release. The fund offers investors access to fixed-income strategies designed to overcome the challenges of current markets.

The fund's objective is to generate absolute returns with a low correlation to both interest rates and equity markets. It seeks to achieve this by separating fixed-income instruments into their two main components, interest rate and credit return, and actively managing each independently.

"The current interest rate environment poses significant obstacles for traditional fixed-income products," president Brian D'Costa said in the release. "We believe the low level of interest rates will make it difficult to generate adequate returns, while an increase in rates could lead to material losses. Our fund aims to provide investors with an opportunity to profit from both rising and falling interest rate environments."

The fund will invest primarily in investment-grade corporate debt through both long and short positions by executing absolute value, relative value and active trading strategies. Additionally, it will use hedging techniques and employ modest leverage.

Algonquin Capital is a boutique investment firm based in Toronto.

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