Hedge Funds

Davidson opens distressed fund

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New York-based Davidson Kempner is launching a new distressed hedge fund this month. The firm, which runs both long-only and hedge fund assets, is rolling out the Davidson Kempner Distressed Opportunities Fund.

The fund, which has annual liquidity, will levy a 7% penalty to investors who want quarterly redemption in the first year. After that it will go down to 5%. The portfolio managers are Michael Leffell and Eric Epstein.

The firm currently manages around $5.8 billion in assets. According to the Absolute Return index, distressed funds are up 1.61% YTD and have a compounded annual return of