Sometimes the toughest decision for a risk taker to make is whether to end a successful performance early and go out on top. The money managers at GoldenTree Asset Management announced such a decision last week regarding its $750 million collateralized debt obligation, High Yield Opportunities I.
GoldenTree will begin redeeming the fund on May 1, 18 months before its maturity. The firm expects the fund will have achieved an annualized return of about 17.45%, net of all fees compounded since inception. The impetus behind closing the CDO is GoldenTree's desire to reduce its quantity of funds.