Blackstone/GSO Long-Short Credit Income Fund (NYSE: BGX) is a closed-end management investment company that seeks to generate high current income and total return through a flexible, actively managed credit strategy. Listed on the New York Stock Exchange, the fund is externally managed by Blackstone Credit (formerly GSO Capital Partners), the credit investment platform of Blackstone Inc. By combining long and short positions in corporate credit instruments, BGX aims to capitalize on inefficiencies across credit markets while managing downside risk.
The fund’s core investment activities encompass a diverse range of credit instruments, including senior secured loans, high-yield bonds, convertible securities and structured products. To complement its long holdings, BGX employs hedging techniques and derivatives, such as credit default swaps and total return swaps, to express tactical short positions and manage portfolio volatility. This dynamic approach aims to deliver attractive risk-adjusted returns in varying market conditions.
BGX primarily focuses on issuers in North America and Europe, with selective exposure to other developed markets. The portfolio managers draw upon Blackstone Credit’s global research platform to source opportunities across sectors including financials, healthcare, technology and industrials. Leverage may be employed within regulatory limits to enhance yield, while robust risk-management processes seek to limit drawdowns and preserve capital.
Since commencing operations in 2010, BGX has been affiliated with Blackstone’s broader alternative investment platform, benefitting from deep fundamental analysis, trading capabilities and credit research. The fund provides investors with access to a long-short credit strategy that leverages Blackstone Credit’s scale and expertise, delivering a distinct complement to traditional fixed-income allocations.
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