Performance profile: Xerion flies high on special situations


An expanded focus that includes special situations, such as event-stressed equities, has lifted the performance of Xerion Partners' distressed strategy to lofty levels this year. In May, Xerion Partners II Master Fund returned 5.05% to reach an outstanding total of 27.57% for the year. That performance far outpaces the Absolute Return Distressed Index, which gained a median 1.34% in May to total 6.15% for the year.

One position that has contributed to Xerion's outperformance is Mississippi Phosphates, whose equity trust certificates Xerion bought this January on the thesis that rising demand for corn-based ethanol would boost orders for the