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 are subject to risks, including the potential loss of principal. No prospective investor should assume that the Fund’s performance will be profitable or equal that of the Representative Account. Bay Point Advisors (“BPA”) is the adviser to the Bay Point Capital Partners (“BPCP”) Fund. The BPCP Fund was incepted on February 28, 2013 (as represented by the first sale of interests within the Fund) and, at the time, BPA was an exempt reporting adviser (“ERA”). BPA transitioned from ERA to an investment adviser registered with the U.S. Securities & Exchange Commission on March 19, 2019.
The Bay Point Capital Partners II Fund and BPCP II Offshore Ltd. Fund (“Offshore Fund”) are structured as a Master-Feeder Fund respectively and available only to Qualified Purchasers. Accordingly, the Offshore Fund invests all its assets in the BPCP II Fund. All investments involve the risk of loss. No prospective Qualified Purchaser should assume that the Feeder Fund’s performance will be profitable or equal that of the Master Fund.
In some cases, results are compared to the performance of the Bloomberg Barclays U.S. Aggregate Bond Index and the Morningstar Nontraditional Bond Category Average (together the “Comparative Indexes”) for informational purposes only and should not be construed as a performance target.
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 BPA does not independently verify or otherwise warrant the accuracy or completeness of such information. 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.
Performance returns of the Funds reflect the time-weighted return, net of (i) an annual management fee of 2.0%, (ii) a performance allocation of 20%, taken annually, subject to a “high water mark”, and (iii) transaction costs and operating expenses for a hypothetical partner. Returns assume no material contributions or withdrawals. Actual returns may differ from the returns presented. Each limited partner will receive individual performance returns from the Funds’ Administrator.
Bay Point Capital Documents
Click on a document to download current marketing literature or see the Manager Commentary online
Bay Point Performance Summary
Previous Manager Commentary