BlackRock's $1.9 Billion Credit Hedge Fund Suffers Worst January
- Obsidian's 4% drop marks weakest start in its 19-year history
- Corporate debt, global rate strategies hurt the performance
The BlackRock offices in New York.
Photographer: Scott Eells/BloombergThis article is for subscribers only.
BlackRock Inc.’s global credit hedge fund is off to its worst start in its 19-year history amid a selloff in bonds as oil prices fell and concerns over a recession rose.
The flagship $1.9 billion Obsidian fund fell 4 percent in January after failing to anticipate “the extent to which markets would trade in lockstep with commodities,” according to an investor update, a copy of which was obtained by Bloomberg. The fund lost money from corporate credit and global-rate strategies.