Distressed Securities Does it Again

By Paul Kedrosky · December 26, 2006 · ·

The distressed securities subsector of the hedge fund business just turned in the best performance of 2006, putting up a 15.5% number. That was impressive, but comes following similar outperformance in the preceding three years. Remarkable stuff. 

                             NET      %     YTD   52-WK                              CLOSE*    CHG    CHG   % CHG   % CHG Convertible Arbitrage        130.95  -0.09  -0.07    10.3    10.4 Merger Arbitrage             123.83  -0.16  -0.13     9.0     9.1 Event Driven                 141.39   0.06   0.04    12.4    12.5 Distressed Securities        174.89  -0.01  -0.01    14.8    15.5 Equity Market Neutral        108.77  -0.06  -0.06     7.1     7.2 Equity Long/Short            113.80  -0.21  -0.18     7.7     7.2 

*Estimates as of 12/22/06, after fees.

Related posts:

  1. Euronext and Famous Franco-German Solutions
  2. David Swensen’s Private Equity Imprimatur
  3. Private Inequity: The Coming Private Equity Bust
  4. Date Palm Arbitrage
  5. New Software Bloodlines Needed

Comments

  1. Tom says:
    December 27, 2006 at 4:02 am

    This moment seems like a great time to be an optimist (though being optimistic about emerging markets was a better bet). Wonder how long it lasts?

  2. John K says:
    December 27, 2006 at 9:08 am

    For comparison, approx figures for:
    S&P 500: +14.5%
    MSCI EAFE: +22%
    NASDAQ: +7.2%
    DJIA: +16.5%
    DJ .REIT Index: +34%

  3. Darland says:
    December 27, 2006 at 12:01 pm

    Or: the three “A”s did well. The big story of 2006 was Autos, Auto Parts and Airlines, there was not much to distressed this year.