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Daniel Mudd From Kirsten Bischoff, Opalesque New York:
Hedge fund managers with credit strategies are patiently awaiting the offloading of distressed assets by financial institutions that will need to clean up their balance sheets, or other situations that allow them to provide, what Fortress Investment Group’s Director and CEO Daniel Mudd referred to as "financial services garbage collection," during his firm’s quarterly call this month.
It is the same place that Mike Seery, expects hedge funds to find plenty of opportunities. Seery, who recently joined the corporate recovery and restructuring advisory practice at the New York offices of Kinetic Partners, and whose experience in financial restructuring includes stints at CRT Investment Banking, Chanin Capital Partners, and Merrill Lynch, told Opalesque: "There are a lot of structured products out there where losses have to be realized, where big banks have these illiquid assets on their balance sheets – CDOs, CLOs, fund linked derivatives -which have to be unwound, and it is an area where we think there is an opportunity."
Targeting those hedge fund managers is one of the reasons Kinetic Partners is in the process of building up their restructuring practice. Seery is also focused on building that part of the firm as distressed debt continues through its recovery cycle.
Distressed hedge funds have shown solid performance through 2011, and YTD through July were up +4.09% (according to BarclayHedge). The top three fu...................... To view our full article Click here
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