Distressed Securities Does it Again

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:

    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:

    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:

    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.