Schroder is on a roll


With company balance sheets starting to revive and investor inflows into the sector continuing to pour in, distressed funds are increasingly finding it harder to put their capital to work. Still, a steady flow of bankruptcies and latter-stage bailouts pushed returns higher and kept the game going.

Distressed players are hoping the prospects remain strong in 2004, but many like HBV Mellon's distressed team have closed the door to new money.

Funds like Schroder Credit Renaissance gained 2.1% in December leaving the fund up 26.4% for the year, much in line but ahead of the average return of 21% seen