Exciting new investment in innovative fixed income strategy

In June 2007, Kapstream Capital was appointed to manage a Global Absolute Return Income strategy within the BT Multi-manager Growth, Balanced and Conservative funds, replacing an Australian Bonds strategy managed by Tyndall. 

Kapstream Capital was established in late 2006 as a global fixed income fund manager providing alternative investment strategies to the increasingly sophisticated market in Australia. Founded by the highly respected ex-PIMCO portfolio manager, Kumar Palghat, Kapstream is part of the set of boutiques backed by Challenger Financial Services.

It has long been recognized that bond benchmarks are inefficient. By freeing itself from the constraint of managing to a benchmark, Kapstream is able to more fully access opportunities available to it. We believe Kapstream to be optimally positioned between the higher risk fixed income hedge funds and the more conservative traditional bond fund managers. Kapstream’s small size enables it to be responsive to the market, identifying and implementing strategies with ease and efficiency.

Tyndall has been terminated after being downgraded by our consultant on the back of significant organisational instability.