Hedge Funds

HSBC preps distressed launch


HSBC is launching a stand-alone distressed fund that has produced annualized unlevered gross returns of 17% with volatility of 4.9 within its HSBC Multistrategy fund.

The fund will likely be called the HSBC Distressed Debt Fund and will launch in March with $50 million of seed capital from HSBC Halbis Partners.

The fund will be run, like the distressed investments in HSBC's multistrategy vehicle, by Kim Golden. Golden, a former concert violinist who performed under such conductors as Seiji Ozawa and Leonard Bernstein, is confident that the deluge of overly optimistic issuance in the past two