Catching distress on the rebound

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The very forces that conspired to hinder distressed portfolios last year are now actually helping performance - at least for the moment

Long-term investors in distressed funds know the drill. So do seasoned portfolio managers. It's often either feast or famine. But knowing how long the season will last is another matter. Market cycles influencing performance may be rhythmic, but the duration of such cycles is a bit hard to call with any great accuracy.

Exogenous events that periodically shake distressed funds and their performance are no more predictable than meteor strikes. But such hits, whether the double whammies of