Lasry’s High-Yield Fund Held 45% Cash After Third Avenue FreezeBy
Fund raised cash after $150 million redemptions in two days
Firm says withdrawals have since eased to `minimal level’
Avenue Credit Strategies Fund, a high-yield fund run by Marc Lasry’s Avenue Capital Management, put about 45 percent of its portfolio into cash earlier this week after another high-yield fund with a similar name, the Third Avenue Focused Credit Fund, froze redemptions last week.
Avenue Capital was worried that clients would confuse the names and pull money from its fund, said Todd Fogarty, a spokesman for the firm. Avenue Credit Strategies suffered about $150 million in outflows in the two days after the $788.5 million Third Avenue Fund, which was run by Martin Whitman’s Third Avenue Management, stopped withdrawals…
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