Barclays Global Investors on Nov. 1 will unveil a credit long-short...

Barclays Global Investors on Nov. 1 will unveil a credit long-short fund for institutional investors, taking positions on investment-grade and high-yield bonds and incorporating research from the firm's equity and debt units when analyzing securities, said Brian Zalaznick, principal, head of U.S. fixed-income strategy. The fund, to be capped at about $1 billion, will also allocate 10% to structured credits such as synthetic securities or single-tranche collateralized debt obligations. The fund also will buy and sell credit protection via credit default swaps. "At some point in the life of this fund, we'll sell protection on all 125 names in the (Dow Jones) CDX and then buy protection on the five or 10 names that we think represent a high risk of default," said Mr. Zalaznick. The fund, which aims for an annualized return of 8% to 10%, already has $60 million and a commitment for another $200 million. Mr. Zalaznick declined to name the clients.