Hedge Funds

Oaktree launches distressed strategy


Distressed debt pioneer Oaktree Capital Management is offering its $9 billion distressed debt strategy to hedge fund investors for the first time.

Until this month, investors could access the Los Angeles firm's distressed strategy only through closed-end vehicles structured with private equity-style fees and lockups. The strategy is run jointly by Oaktree president Bruce Karsh and founding principal Richard Masson.

Over the last 19 years, first at Trust Company of the West and since 1995 at Oaktree, Karsh and Masson's funds have produced an annualized aggregate gross internal rate of return of 24.3% and a net return of