Inside a Long/Short Credit Hedge Fund: Sizing, Shorts and LME Risk — Frits Lieuw-Kie-Song (Ironshield Capital)

A fifteen-billion-dollar manager's European analyst can look at three or four situations before the rest fail his liquidity screen. Frits Lieuw-Kie-Song runs a few hundred million and can look at hundreds. This is a full walk through how a long/short credit hedge fund is actually run.Full analysis: https://open.substack.com/pub/fixedfloating/p/how-a-longshort-credit-hedge-fund?r=718tew&utm_campaign=post&utm_medium=web&showWelcomeOnShare=trueJosef Pschorn speaks with Frits Lieuw-Kie-Song ofIronshield Capital about building a market-neutral high yield book: which credits are eligible, how positions get sized, when a short earns its borrow, and where the tail hedge sits.Liability management exercises now bring the mediancompany back within roughly a year, because the fee-driven process fixes the balance sheet without fixing the business.Being in the co-op group is not the same as sitting on the committee, and Frits will pass on a situation where he cannot influence how the pie is divided.A 400 million single-bond capital structure is too small to matter for a fifteen-billion manager, which is where in-depth research still earns its keep.Position size is dictated by the downside case, with a loss budget of roughly 50 basis points of the fund per position.The tail hedge is put spreads 5 to 15% out of the money, six months out, rolled regularly, written for the event where correlation goes to one.Two worked trades: Evoke after the UK online gamingtax move, bought at a 70 LTV with a takeover catalyst, and Volta Grid during the data centre construction scare.Ironshield Capital: https://ironshieldcapital.com/Connect with Fixed + Floating: LinkedInhttps://www.linkedin.com/company/fixed-floating | Xhttps://twitter.com/FixedFloatingFixed + Floating is for informational purposes only.Not investment, legal, or tax advice.Recorded: 27.07.2026#fixedfloating #creditanalysis #highyield#longshortcredit #liabilitymanagement #europeancredit