Tepper Protege Cole’s Fund Soars 25% in March Shorting Credit

(Bloomberg) -- Eric Cole’s Warlander Asset Management soared 25% in March betting against a range of global credit as the coronavirus pandemic sent bonds for companies and governments plummeting.

Warlander, which manages about $750 million including leverage, made money by being net short on municipal, emerging-market, high-yield, investment-grade and sovereign bonds, according to a person with knowledge of the matter, who asked not to be identified because the information isn’t public. The hedge fund is up 30% for the year.

Cole, who worked for billionaire David Tepper’s Appaloosa Management before starting Warlander in 2015, posted gains while many credit funds suffered in the market sell-off. The category is down about 7.7% this year, according to preliminary data compiled by Bloomberg. Firms including Medalist Partners, EJF Capital and Prophet Capital Asset Management blocked client redemptions, while CQS’s flagship fund was headed for a drop of at least 30% in the first quarter.

A spokesman for New York-based Warlander declined to comment on performance.

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