Shiprock, Broad Reach Turn Away Investors as EM Rally Pushes AUM to $1 Billion

1 articles · Updated · Bloomberg · May 31

$1 billion in assets prompted Shiprock Capital to stop taking new money, while Broad Reach said it plans to close its main fund once it hits its asset ceiling later this year.
Record gains in emerging markets have driven a surge of cash into the asset class, leaving the two debt-focused hedge funds near or at capacity.
Shiprock specializes in distressed sovereign debt tied to Venezuela, Argentina and Ukraine, while Broad Reach manages about $3 billion and is preparing to cap inflows as demand keeps rising.
The move shows how the EM rally is reaching niche, hard-to-access debt strategies, where managers say too much capital can limit their ability to deploy money effectively.

As top funds turn away money, is the emerging market debt rally a massive bubble about to pop?

Venezuela's bonds are soaring, so why do major oil companies still call it 'uninvestable' for new capital?

Argentina's national bonds look expensive. Are its provincial debts now the smarter high-yield investment play?