Distressed-Asset Hedge Funds Run Into Trouble (The Wall Street Journal) Hedge-fund firms York Capital Management and Southpaw Asset Management are barring clients from getting back all of the money they have requested for year-end, a sign of the pressure that investors in distressed assets are facing. Funds at both firms faced significant client redemptions, according to people familiar with the matter. In response, the funds have erected so-called “gates,” or barriers that limit withdrawals of money from a fund. Gates are a controversial tool used by hedge funds during the financial crisis, but…
It's pretty bad timing to do badly in a year when U.S stock markets are making record highs. It's hard to answer clients who naturally expect better performance from higher fees.
in this low interest rate environment, a company going into distress must be in a real shitty situation.