Sculptor Tactical Credit Returns 23% Aided by Mispriced Debt

Sculptor Capital Management’s Tactical Credit Fund returned 23% last year, boosted by its holdings of mispriced investments and higher-coupon debt, according to a person familiar with the performance who was not authorized to speak publicly.

The fund, which has around $500 million of assets under management and focuses on opportunistic credit bets, benefitted from investing in more complex financings like bankruptcy-exit debt and buyout financings that were stuck on bank balance sheets, the person said. The ICE Bank of America Global High Yield Index, which the Sculptor fund uses as a benchmark, returned 13.4% last year.

Two transactions in ...