Hedge Funds

Canyon Capital raises cash to meet redemptions. But will investors now stay?


Canyon Capital Advisors investors might want to rethink those redemption notices. After an atrocious 2008, which led to hefty redemption requests, Canyon's funds have made big gains with the credit market's resurgence. For the year through May 22, Canyon Capital Arbitrage Fund rose 51.04%; Canyon Value Realization Fund netted 27.6% through June 5.

Mitch Julis and Josh Friedman

Canyon was hard hit by last year's financial crisis, and investors still with the Los Angeles firm could use the relief. Canyon Value Realization, a distressed-debt fund, lost nearly 30% in 2008, and