^{Loïc Féry, founder and managing partner, Chenavari Investment Managers}

The ebb and flow of unease that has characterised credit markets since 2008 is the enduring consequence of the Lehman default. In late 2011, the risks to credit investing moved further into the spotlight as the difficulties, previously faced by only a handful of Eurozone sovereign borrowers, spread to encompass all 17 single currency members. A reckoning may be at hand.

With the sovereign bedrock of the credit market in turmoil it is a time of heightened risk, but with elevated reward, for investors in corporate credit strategies covering asset-backed, regulated capital structure finance and real estate. In this respect, Europe offers a dazzling range of opportunities to those with the knowledge, experience and risk management nous to run active trading strategies.

Chenavari Investment Managers, founded by Managing Partner Loïc Féry in 2007, is one of a new breed of alternative credit managers generating performance out of this unfamiliar market environment. Although up +2% in 2011 to late November, the Chenavari Multi-Strategy Credit Spread Neutral Corporate Strategy has made an annualised return of 14.4% since launch at the outset of the fourth quarter of 2008 (See Table 1).