Hedge Funds

Event firms open to fresh capital as new distressed cycle beckons

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Event-driven managers King Street Capital Management and Davidson Kempner Capital Management are both accepting new capital from investors as they ready for an upswing in distressed and other event-driven opportunities later this year or in 2009.

New York-based King Street, which manages close to $14 billion, mostly in a multistrategy event-driven fund, is selectively open to new investment, an investor said.

The firm, which focuses on long/short credit and event strategies, has recently done well shorting credit related to financial companies. In 2007, King Street netted 16.3% (vs. a 5.97% gain for the Absolute Return Event Driven Index) and