Strategies

Birch Creek’s primary investment strategy targets high yield and distressed municipal bonds with the objective of generating attractive tax-efficient, absolute returns.

Our municipal credit strategy consists principally of:

  • Identifying underperforming taxable and tax-exempt revenue bonds secured by income producing real estate, defined revenue streams or other types of collateral;
  • Purchasing bonds at prices that we believe are well below recovery value; and
  • Proactively working to realize that value over a long-term hold period.

Birch Creek Credit Value Fund, LP:

Birch Creek’s internally managed, open-ended fund was launched in 2012 and is currently available to qualified investors. The fund offers a long-only investment strategy targeting a niche corner of the approximate $4 trillion municipal market, primarily invested in smaller revenue bond issuers that are typically overlooked by institutional investors. The disciplined investment approach and deep value strategy attempts to limit downside risk, produce low volatility, and low correlation to other fixed income asset classes, while targeting outsized returns compared to municipal high yield benchmarks.

Separately Managed Account (SMA) Strategy:

Launched in 2023, Birch Creek serves as the investment manager on behalf of ultra-high net worth individuals, family offices, and other institutional accounts.  Investment guidelines may be customized to suit client preferences and all assets are held at third-party custodians for the benefit of the account holder.  The SMA account strategy typically seeks to invest a larger portion of assets into less liquid distressed bonds with higher return targets and a smaller portion into performing high-yield municipal bonds, depending on the client's risk tolerance and return objectives.