Cash Is King as Hedge Fund Trilogy Erects Trade-War Barricades

  • Event-driven credit hedge fund has gained 20% through August
  • Exposure to the U.S. power generation market has paid off
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Trilogy Capital Management LLC is increasing cash levels at its credit hedge fund in a defensive move to protect returns, saying a trade war between the U.S. and China will impact all markets and cause unpredictable ramifications.

The New York-based event-drivenBloomberg Terminal credit fund is up 20 percent this year through August after recording 15 percent annualized gains over the past three years by betting on North America’s power-generation market and a Canadian oil sands company, chief operating officer Barry Kupferberg said in an email interview.