The vultures are still feeding on the carcass of the
financial collapse, but there’s not much meat left on the bone, the New York
Post tell us. Distressed hedge funds
have been top performers since the crash of 2008, delivering their biggest
gains in 2009. That’s when top players gained between 30 percent and 80
percent. This year, they are still the second-best performing strategy, up
about 7.35 percent, according to the Absolute Return Distressed Index.
The problem? Most of the big deals — blowups such as the
collapse of Lehman Brothers and the bankruptcy of major auto parts supplier
Delphi — are behind them. Distressed funds need fresh meat.
US corporate bankruptcy filings peaked in the second quarter
of 2009, at around 16,000, and have been trending downward ever since. In the
first quarter of 2011, they hit about 11,000, according to the American
Bankruptcy Institute. Silver Point
co-founder Edward Mulé is optimistic the feast will continue....
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