Hedge Funds

K2 Advisors likes distressed and credit

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K2 Advisors, the Connecticut-based investment manager of London listed Dexion Equity Alternative Investment, is optimistic about near term performance drivers, particularly in terms of targeted sector/security specific opportunities due to the recent improvements in the economy.

Correlations have continued to decline, lending itself well to alpha generation, specifically in the long/short equity space, K2 expects. For specialist credit/event driven strategies, K2 sees an increase in strategic merger and acquisitions activity and corporate restructuring activity (most notably cross border).

Capital structure arbitrage, global distressed and structured credit are among the trades that K2 Advisors believe are attractive.  Volatility in