Hedge Funds

Bay Harbour seeks to raise $500 million


Bay Harbour Management has reopened its high-performing flagship Bay Harbour Master Fund to as much as $500 million of new capital - a sum that would nearly double the $650 million fund's assets.

The fund, which is managed by Steve Van Dyke, Doug Teitelbaum and Kurt Cellar, targets turnaround opportunities in distressed companies. Its past investments include Barneys New York.

Default rates came in lower this year than some analysts predicted in early 2006, but Bay Harbour expects to find enough opportunities at undervalued companies to resume marketing efforts. The New York-based firm manages $1.1 billion of hedge