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 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.
Listening to LeCompte's enthusiasm, which is matched by his mastery of the issues, with the vocal support of Francis, no one should bet against Jubilee USA, not even a vulture fund manager.
Premier Foods is reportedly considering the fundraising rights issue as part of a revamp that the company hopes will address debts of approaching PS1bn and see off the attentions of Wall Street vulture fund Apollo.
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.
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.
Marc Helie, head of a vulture fund, Gramercy Advisors, whose sole mission so far is to collect on defaulted Ecuadorian and Russian debt, has emerged as one of the loudest defenders of bondholders' rights.
Even though vulture fund activity provides liquidity for trade creditors and an estimation from the investment community on the viability of bankrupt retailers, the verdict is still out on whether vultures are helping the reorganization process of distressed retailers," Klee noted.
A recently organized but short-lived vulture fund illustrates the above point.
With a concentration on buying notes directly from banks and real property at auction, the Rothwell Gornt Vulture fund is buying at 50-65% of "today's market value.
Other potential bidders are said to include Albemarle's biggest shareholder EZ Corp - the US pawnbroking giant - as well as New York vulture fund Apollo Global Management.