Looking under the Hood of Active Credit Managers

Financial Analysts Journal, 2020, 76( 2): 82–102

41 Pages Posted: 21 Jun 2019 Last revised: 30 Apr 2020

See all articles by Diogo Palhares

Diogo Palhares


Scott A. Richardson

London Business School; Acadian Asset Management

Date Written: June 1, 2019


Extensive research has explored the style exposures of actively managed equity funds. We conduct an exhaustive set of returns- and holdings-based analyses to understand actively managed credit funds. We find that credit long/short managers tend to have high passive exposure to the credit risk premium. In contrast, we find that high-yield-focused long-only managers provide less exposure to the credit risk premium than their respective benchmarks. For both credit hedge funds and long-only credit mutual funds, we find that neither have economically meaningful exposures to well-compensated systematic factors.

Keywords: corporate bonds, fixed income mutual funds, fixed income hedge funds

JEL Classification: G12, G14, M41

Suggested Citation

Palhares, Diogo and Richardson, Scott Anthony, Looking under the Hood of Active Credit Managers (June 1, 2019). Financial Analysts Journal, 2020, 76( 2): 82–102, Available at SSRN: https://ssrn.com/abstract=3405316 or http://dx.doi.org/10.2139/ssrn.3405316

Diogo Palhares

Independent ( email )

Scott Anthony Richardson (Contact Author)

London Business School ( email )

Sussex Place
Regent's Park
London, London NW1 4SA
United Kingdom

Acadian Asset Management ( email )

260 Franklin Street
Boston, MA 02110
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
PlumX Metrics