GoldenTree Asset Management is returning the assets of the High Yield Opportunities I Fund to investors ahead of schedule. By May 1 - 18 months before maturity - GoldenTree portfolio managers will redeem all of the liabilities of the collateralized debt obligation and $750 million will be returned to investors, according to a statement from the firm.
The CDO fund was established on Oct. 17, 2000, and had annualized returns of 17.45% net of fees since inception, according to the statement.
Last spring, "in recognition of an overvalued leveraged credit market," GoldenTree stopped managing long-only separate accounts and returned close to $1 billion to investors, according to the statement. GoldenTree manages a total of $7.8 billion, $3.8 billion of which is managed in absolute-return strategies.