King Street Flagship Fund Rose 8.3% as Distressed Debt Piled Up

King Street Capital Management’s flagship strategy handed investors a return of 8.25% last year thanks to bets on health care debt and structured credit, according to a person familiar with the matter.

The investment firm’s multi-strategy credit fund, which had $9 billion under management as of late November, increased exposure to structured credit and certain high-yielding securities in 2023, according to the person, who asked not to be named discussing a private matter. That follows a 3.8% decline for the fund in 2022, Bloomberg previously reported.

A representative for King Street declined to comment for the story.

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