Hedge Funds

Marathon alum forms distressed-debt shop


Brett Jefferson, a former portfolio manager at Marathon Asset Management, has launched Hildene Capital Management and is hoping to raise $1 billion for the May 1 launch of its maiden distressed-debt vehicle.

"Substantial opportunities exist in the distressed/stressed structured finance market due to poor asset underwriting, high default rates, a faulty rating process, bond insurer downgrades, investment bank write-downs and decreased liquidity," the firm said in its investor presentation. "Hildene's expertise also will provide transparency to clients in a very opaque product."

Hildene Opportunities Fund will look for buying opportunities among collateralized debt obligations (CDOs), collateralized loan obligations (CLOs),