Finisterre refocuses special sits vehicle on credit

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Finisterre Capital, the $1 billion London-based emerging markets debt specialist, has renamed one of its funds, shortening its redemption terms to suit investor requirements and limiting exposure to special situations. Finisterre is among the many hedge fund firms responding to demand for improved liquidity terms.

The Finisterre Special Situations Fund launched in July 2007 and was originally intended to invest in the less liquid end of the capital structure, but the credit crisis meant that the firm was able to make good returns in more liquid investments.

The fund, which now holds more than $200 million, has been