Vulture fund


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Vulture fund

A fund that buys distressed debt of commercial companies or sovereign nations at a cheap price and then often sues them for the entire value of the debt. The resemblance to vultures is because these funds profit from the debt of failing companies or poor nations.

Vulture Fund

A mutual fund that invests predominately or exclusively in high risk stock and high-yield debt. That is, a vulture fund invests in companies that are in or near bankruptcy. The idea behind a vulture fund is to buy securities at low prices and to earn an extraordinarily high return, even if it forces a company to do things against its best interest. For example, some vulture funds may force a company to repay debt when the company would be better served by declaring bankruptcy and not paying. As a result, the term is somewhat derogatory. See also: Vulture Capitalist.

vulture fund

A pool of investment money used to purchase distressed financial assets or real estate at bargain prices. Vulture funds are relatively risky but offer large potential profits. The performance of a vulture fund is dependent upon the skill of the fund's managers in identifying and purchasing undervalued assets that can be turned into profitable investments.

Vulture fund.

Like the scavenging bird of prey that lends its name to the fund, a vulture fund seeks out depressed or endangered investments.

Many vulture funds focus on real estate, but others invest in bonds that have been downgraded or are in default and other high-risk securities.

The strategy behind vulture investing is that such troubled securities have the potential to provide a large return eventually, in spite of their current vulnerable position. Most vulture funds are limited partnerships, but some are retail mutual funds that are open to individual investors.

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The ALSFs support to countries in fragile situations is anchored by its Medium Term Strategy and will be focused on providing technical assistance aimed at strengthening legal expertise in areas such as vulture fund litigation.
19) The term vulture fund is generally used to describe hedge funds whose strategy involves purchasing debt on the secondary market at deeply discounted rates, refusing restructuring deals, and then pursuing litigation to demand full repayment on the original value of the bond, with the possibility of massive profits.
With skills honed by working with noted vulture fund manager Paul Singer, Brodsky is known for his unyielding approach, refusing to compromise or even negotiate,
The success of vulture fund litigation depends largely on finding assets of defaulted nations that are outside the debtor's frontiers and subject to attachment.
The vulture fund Aurelius Capital Management responded by publishing a notice in newspapers in Argentina and elsewhere warning that "the worst is yet to come for Argentina.
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But H&T faces competition from other potential bidders, including Albemarle's biggest shareholder EZ Corp, the US pawnbroking giant, as well as New York vulture fund Apollo Global Management, according to The Sunday Times.
AN American vulture fund is reportedly circling stricken HMV in a move that could see it become one of the retailer's biggest creditors.
Africa Political and Economic Strategic Center, What is a Vulture Fund and Why Africa, http://www.
Before the deal could be finalized, a vulture fund stepped in and bought the debt from Romania for less than 84 million.
There is a difference between being a vulture fund and being what we call a "Florence Nightingale fund.
Locals were cautious over news of Ripplewood's interest in the park, apparently because of its image as a vulture fund.