Bay Point Capital Strategy
Bay Point Capital draws on its decades of experience managing large, diversified income funds to create a unique, alternative investment strategy for our partners that seeks to deliver consistent returns in various market, business, and credit cycles.
The private offerings of Bay Point’s Asset Management division allocates capital to niche markets that are difficult to access, require in-depth research, and are less efficient. Since the end of the banking crisis of 2008/2009, increased regulatory pressure on banks has diminished the flow of capital to small businesses, and significantly increased the need for private lending. The industry's reluctance to lend to small and middle market businesses and our willingness to develop creative funding solutions for borrowers has created opportunities for Bay Point to earn very attractive returns while mitigating downside risk.
Overview & Benefits
Our typical investment is a short-term, secured loan. We have an advantage over banks by being able to more accurately value collateral, negotiate flexible terms and close loans within a shorter time frame.
The advantages of our strategy is the ability to deliver high current income with minimal interest rate risk, low volatility, and no correlation to stocks or bonds. With our ability to invest across the entire spectrum of income sectors, we can limit the Fund’s exposure to default risk and rising interest rates.
In 2018, Bay Capital Partners, LP was awarded #2 in the Barclay Hedge Fund database for Fixed Income – Asset Backed Loans. The award is based on the cumulative net year-end performance for 42 Fixed Income - Asset Backed Loan funds that report monthly to the Barclay Hedge database.
Disclaimer Regarding Performance
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. All investments involve the risk of loss. No prospective investor should assume that the Fund’s performance will be profitable or equal that of the Proprietary Account.
Results are compared to the performance of the Barclays U.S. Aggregate Index and Morningstar Nontraditional Bond Category Average (together the “Comparative Indexes”) for informational purposes only. The Fund’s investment program does not mirror either of the Comparative Indexes and the volatility of the Fund’s investment program may be materially different from that of the Comparative Indexes. The securities or other instruments included in the Comparative Indexes are not necessarily included in the Fund’s investment program and criteria for inclusion in the Comparative Indexes are different than those for investment by the Fund. The performance of the Comparative Indexes was obtained from published sources believed to be reliable, but which are not warranted as to accuracy or completeness. Unless noted otherwise, the returns of the Comparative Indexes presented herein do not reflect fees or transaction costs, but those returns do reflect net dividends, if any.
Bay Point Capital Documents
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Bay Point Performance Summary
Previous Manager Commentary