Third Avenue Management is liquidating a credit fund after losses and client redemptions.
The Third Avenue Focused Credit Fund will return cash to investors on or about Dec. 16, the New York-based firm said on its website Wednesday. Some assets will be placed in a liquidating trust, and interests in that trust will also be distributed that day.
“We believe that, with time, FCF would have been able to realize investment returns in the normal course,” David Barse, the firm’s CEO, said in the statement.
“Investor requests for redemption, however, in addition to the general reduction of liquidity in the fixed-income markets, have made it impracticable for FCF going forward to create sufficient cash to pay anticipated redemptions without resorting to sales at prices that would unfairly disadvantage the remaining shareholders,” he wrote.
The fund lost 13% in the past month and is down 27% this year, according to data compiled by Bloomberg. Assets were at $942 million as of Nov. 30.