Highbridge Tactical Credit Share Discussion Threads

[daemonfunds] 30/7/2021 01:10

@rambutan2: closed this and went for third point TPOU - good luck if you're still in this one

[daemonfunds] 28/5/2021 23:30

question for rambutan2: what credit fund have you got to reinvest in as this one returns capital? Intermediate Capital Group (ICP) looks very pricey but haven't found anything else that tempts

[daemonfunds] 18/5/2021 21:54

lovely work rambutan2

[rambutan2] 18/5/2021 04:52

Goody goody!

17 May 2021

RETURN OF CAPITAL TO SHAREHOLDERS

The Company today announces that it will return GBP14,682,460.96 (equivalent to GBP0.83 pence per share) on 20 May 2021 (the "Redemption Date") by way of a compulsory partial redemption of ordinary shares of NPV ("Shares") ( the "Redemption").

The Redemption will be effected at GBP2.6986, being the NAV per Share as at 31 March 2021 and pro rata to holdings of Shares on the register at the close of business on the Redemption Record Date, being 20 May 2021. As at today's date, the Company has 17,689,712 Shares in issue of which nil are held held in treasury. On this basis approximately 30.75 percent. of each registered shareholding would be redeemed on the Redemption Date.

Fractions of shares will not be redeemed and so the number of shares to be redeemed for each shareholder will be rounded down to the nearest whole number of shares.

All shares that are redeemed will be cancelled with effect from the relevant Redemption Date.

[rambutan2] 19/2/2021 21:03

Thanking you!

19 February 2021

RETURN OF CAPITAL TO SHAREHOLDERS

The Company today announces that it will return GBP13,625,182 (equivalent to GBP0.59 pence per share) on 25 February 2021 (the "Redemption Date") by way of a compulsory partial redemption of ordinary shares of NPV ("Shares") ( the "Redemption").

The Redemption will be effected at GBP2.5214, being the NAV per Share as at 31 December 2020 and pro rata to holdings of Shares on the register at the close of business on the Redemption Record Date, being 25 February 2021. As at today's date, the Company has 23,093,530 Shares in issue as the 26,166,818 previously held in treasury have now been cancelled. On this basis approximately 23.4 percent. of each registered shareholding would be redeemed on the Redemption Date.

Fractions of shares will not be redeemed and so the number of shares to be redeemed for each shareholder will be rounded down to the nearest whole number of shares.

All shares that are redeemed will be cancelled with effect from the relevant Redemption Date.

[rambutan2] 16/2/2021 22:48

Weekly Estimated Net Asset Value

The Company announces the unaudited net asset value ("NAV") of an Ordinary Share (a "Share") in the capital of the Company as at 22 January 2021 (the "Valuation Point"):

Shares NAV
Ordinary Shares GBP 2.5867

The Company also announces cumulative performance as at the Valuation Point:

Week on Week Month to Date Year to Date
Company NAV Performance +0.45% +2.50% +2.50%

[rambutan2] 13/2/2021 21:47

Monthly Final Net Asset Value

The Company announces the unaudited net asset value ("NAV") of an Ordinary Share (a "Share") in the capital of the Company as at 31 December 2020 (the "Valuation Point"):

Shares NAV
Ordinary Shares GBP 2.5214

The Company also announces cumulative performance as at the Valuation Point:

Month on Month Year to Date
Company NAV Performance +2.73% +18.75%

At the request of shareholders and the Board, the Administrator has prepared the below table providing further information about the approximate asset exposure of the Company:

Cash 27.41%

Highbridge Tactical Credit Fund 69.61%
Highbridge Multi-Strategy Fund Corporation 2.60%
AllBlue Limited and AllBlue Leveraged Feeder Limited 0.38%

[rambutan2] 08/2/2021 21:50

From 29/01/21:

Company Update

Redemption in the Highbridge Tactical Credit Master Fund

The first quarterly redemption proceeds from the Highbridge Tactical Credit Master Fund ('HTCMF') in connection with the Company's managed wind-down are expected to be received next week and the Board anticipates being able to distribute the redemption proceeds in February. The second quarterly redemption was submitted last week in time for the 31(st) March 2021 Dealing Day and it is anticipated that proceeds from this second redemption will be distributed in May.

Distribution from the Highbridge Multi-Strategy Master Fund

A further cash distribution from Highbridge Multi-Strategy Master Fund ('HMSMF') has been received in the amount of GBP964,968. The Board has determined that it is not economically viable to make a distribution at this time, so will review the position when the next distribution is received. This is anticipated to be at the end of March.

NAV Reporting

The Board wish to advise that the delay to the estimated weekly NAV at 15 January 2021 is due to the 31 December 2020 valuation of the HMSMF not yet being finalised. The Board has been informed that the required information is expected to be made available on or before 30 January 2021, and the estimated NAV of the Company is to be published as soon as possible thereafter.

Subsequent to the shareholders of the Company passing a resolution that the Company ceases to continue in its current form and enters a managed wind-down, the Board announce that the weekly NAV estimate reporting will cease from the 31 January 2021 to reduce the Company's costs. The Company will continue to publish the monthly final NAVs.

[rambutan2] 08/2/2021 21:47

Weekly Estimated Net Asset Value

The Company announces the unaudited net asset value ("NAV") of an Ordinary Share (a "Share") in the capital of the Company as at 15 January 2021 (the "Valuation Point"):

Shares NAV
Ordinary Shares GBP 2.5752

The Company also announces cumulative performance as at the Valuation Point:

.....................Week on Week Month to Date Year to Date
Company NAV Performance +0.93% +2.04% +2.04%

[rambutan2] 18/12/2020 15:57

Here we go:

Result of Extraordinary General Meeting

The Board announces that, at the Extraordinary General Meeting ("EGM") of the Company held at 10:00 a.m. today, the resolution set out in the Notice of EGM dated 27 November 2020, was duly passed. The Board is pleased to note that 47.69% of the shares outstanding voted.

The Board expect to be in a position to make the first distribution of approximately 25% of NAV to shareholders by the end of February 2021.

[rambutan2] 17/12/2020 20:40

The Company announces the unaudited net asset value ("NAV") of an Ordinary Share (a "Share") in the capital of the Company as at 11 December 2020 (the "Valuation Point"):

Shares NAV
Ordinary Shares GBP 2.4994

The Company also announces cumulative performance as at the Valuation Point:

...................Week on Week Month to Date Year to Date
Company NAV Performance +1.04% +1.84% +17.72%

[rambutan2] 09/12/2020 21:25

Weekly Estimated Net Asset Value

The Company announces the unaudited net asset value ("NAV") of an Ordinary Share (a "Share") in the capital of the Company as at 4 December 2020 (the "Valuation Point"):

Shares NAV
Ordinary Shares GBP 2.4736

The Company also announces cumulative performance as at the Valuation Point:

...................Week on Week Month to Date Year to Date
Company NAV Performance +0.79% +0.79% +16.50%

[rambutan2] 09/12/2020 21:24

hashertu, because it will be a great surprise if shareholders don't vote for the discontinuation in the soon to be held egm.

[hashertu] 09/12/2020 12:34

Rambutan. Why do you think the end nears?

[rambutan2] 04/12/2020 21:32

Weekly Estimated Net Asset Value

The Company announces the unaudited net asset value ("NAV") of an Ordinary Share (a "Share") in the capital of the Company as at 30 November 2020 (the "Valuation Point"):

Shares NAV
Ordinary Shares GBP 2.4543

The Company also announces cumulative performance as at the Valuation Point:

................Week on Week Month to Date Year to Date
Company NAV Performance +0.52% +2.72% +15.59%

[rambutan2] 02/12/2020 03:46

The most relevant bits from the above circular:

In preparation for a possible discontinuance, to be determined at the upcoming Extraordinary General Meeting, we submitted the first of the four equal quarterly redemption requests required to redeem our entire holding in the Highbridge Tactical Credit Master Fund, L.P. (the "Underlying Fund"). The first quarterly redemption will be effective 31 December 2020 and the resulting proceeds are expected to be distributed to the Company in mid-February 2021 with a distribution made to shareholders shortly after. Of course, should shareholders at the Extraordinary General Meeting vote to continue the life of the Company then we will seek to cancel the redemption request. In the event that shareholders vote to discontinue the Company, the redemption process will be governed by the terms of the Underlying Fund, in that the redemption proceeds will be distributed in four quarterly instalments and shareholders therefore will continue to be exposed to the performance of the Company until the final quarterly redemption occurs. The final quarterly redemption will occur at the end of September 2021 with distribution expected to occur in mid-November 2021.

The Board has no plans to seek to de-list the Shares until substantially all of the Company’s capital has been returned to Shareholders. The Board appreciates that Shareholders value the liquidity that a listing can provide, even as a fund is being run off.

In order to become effective, the Resolution tabled at the Extraordinary General Meeting, which is being tabled as an Ordinary Resolution, must be approved by a simple majority of more than 50 percent of the votes cast by Shareholders present in person or by proxy at the Extraordinary General Meeting.

[rambutan2] 27/11/2020 21:04

The discount is (finally) creeping in as the end nears:

Publication of Circular

The Company is today posting a circular to Shareholders to propose the discontinuation resolution (the "Circular" and the "Proposal"). The Circular sets out further details of the Proposal and contains a notice convening an Extraordinary General Meeting to be held at 10.00 a.m. on 18 December 2020 at Sarnia House, Le Truchot, St Peter Port, Guernsey, GY1 1GR, Channel Islands.

[rambutan2] 27/11/2020 21:02

Factsheet commentary:

For the third quarter and year-to-date period, the Highbridge Tactical Credit Fund Limited ("the Company”) generated strong risk-adjusted returns.

As we discussed in our first and second-quarter commentaries, during March and April, we increased the underlying fund’s exposure to the US & European mid-Cap convertible credit and event credit sub-strategies. These portfolio composition changes reflected our view of the bottom-up attractiveness of the convertible debt market and our increasing conviction in our ability to successfully execute corporate actions.

The underlying fund has benefited meaningfully from these allocation shifts, especially when assessed in connection with our decision to deemphasise our distressed credit & reorganised equity sub-strategy. To quantify, our US & European mid-cap convertible credit and event credit sub-strategies have driven a majority of the Company’s year-to-date return.

The pipeline of corporate actions has increased in the last three months, and the underlying fund’s implied credit spread remains at a historically elevated level. In fact, the event credit sub-strategy contributed meaningfully to third-quarter returns. Many of the underlying fund’s portfolio companies are proactively reviewing their capital structures as well as their funding needs, presenting both exchange and new money transaction potential.

More specifically, we see increasing scope to deploy capital into income-oriented investments. We have already seen an increase in borrowers seeking term loans, particularly those who appreciate our ability to value publicly traded common equity as currency.

We believe our willingness to leverage our cross-capital structure trading capabilities differentiates us in the marketplace, especially among loan providers, and allows us to provide less commonly proposed capital solutions.

Given the recent substantial rebound in risk assets and our view of a generally changed risk-reward paradigm (despite substantial market uncertainty), we have been, and intend to continue to be, measured and prudent in our management of the underlying fund’s balance sheet and the nature of the exposures.

We believe that the underlying fund’s alpha opportunities (e.g. events) and intrinsic value (e.g. wide implied credit spread, especially relative to the market) present the possibility to potentially achieve returns with less broad market exposure.

Specifically, we see opportunities to: 1) exchange convertible debt exposures for income-generating securities or equity; 2) facilitate M&A; 3) deploy capital to proprietarily sourced new money term loans; 4) increase idiosyncratic distressed investments; 5) grow our portfolio of volatility trading instruments; and 6) continue to capitalise on an active convertible debt market issuance calendar.

We believe that our focus on idiosyncrasy and the diversity of ways in which we may potentially generate profits position the underlying fund well for today’s changed investment environment.

[rambutan2] 11/11/2020 22:41

Weekly Estimated Net Asset Value

The Company announces the unaudited net asset value ("NAV") of an Ordinary Share (a "Share") in the capital of the Company as at 6 November 2020 (the "Valuation Point"):

Shares NAV
Ordinary Shares GBP 2.4011

The Company also announces cumulative performance as at the Valuation Point:

................Week on Week Month to Date Year to Date
Company NAV Performance +0.54% +0.54% +13.09%

[rambutan2] 29/10/2020 20:56

Weekly Estimated Net Asset Value

The Company announces the unaudited net asset value ("NAV") of an Ordinary Share (a "Share") in the capital of the Company as at 23 October 2020 (the "Valuation Point"):

Shares NAV
Ordinary Shares GBP 2.3900

The Company also announces cumulative performance as at the Valuation Point:

..............Week on Week Month to Date Year to Date
Company NAV Performance +0.14% +0.07% +12.57%

[rambutan2] 21/10/2020 04:17

Gets a mention by Ben Conway of Hawksmoor in a piece mainly about cheap property trusts on Citywire yesterday:

"Conway also highlighted the possibility that Highbridge Tactical Credit (HTCF) could wind up following a continuation vote at the end of the year, with cash being returned to investors. With the listed hedge fund vehicle currently trading on a 13% discount, that creates potential for a significant upside with relatively low risk in a short period."

[rambutan2] 11/10/2020 20:30

And also, it has acted like a true hedge fund this year, not dropping along with everything else in the spring. So, protected on the downside and some decent upside.

[mach100] 10/10/2020 20:23

Thanks Rambutan2. Appreciate the views and looks a decent risk v reward.

[rambutan2] 10/10/2020 05:49

Hi Mach100. Assuming we get a discontinuation, we will be exposed to the nav of HTCF for the next 12mths, albeit decreasing by 25% on each quarterly redemption. By buying now, you get 11% via the current discount. And if the fund can continue to produce returns similar to those during 2020, then a positive nav increase over the next 12mths should be possible. Lots of ifs and buts etc but 15% upside from the current share price appears quite possible to me.