Funds are having a good year, but few are performing as well as Scottwood Capital. The value-based, credit-focused strategy posted a gain of 2.48% in September for a year-to-date return of 31.11%.
Long positions in bank loans and senior corporate bonds, many established earlier in the year, lifted Scott-wood in September. For 2008 the fund lost 7.65%, its first down year since its 2001 inception. Scottwood, located in Greenwich, Conn., was founded by Ed Perlman, who also serves as its portfolio manager. Over its eight-year history, the fund averaged an annual return of 13.97% and a Sharpe ratio of 1.40. Jermaine Moise
