Credit hedge funds invest across a variety of debt instruments in pursuit of attractive absolute and risk-adjusted returns. Credit shares a similar trading approach to other specialized hedge fund strategies, such as long/short equity and event-driven, but is applied to various fixed-income instruments including bank loans, corporate, municipal and government bonds, distressed debt, and securitized credit. CREDIT HEDGE FUND STRATEGY OVERVIEW
There are three main types of credit hedge fund strategies: Long/Short, Securitized, and Distressed.