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.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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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vulture capitalist

References in periodicals archive ?

IF proof was wanted to show whose side Fine Gael is on you need look no further than the protest held outside a vulture fund's office on Wednesday.

Another Fine mess from vulture funds

The vulture fund's actions and the ruling have raised concerns about the erosion of sovereign immunity.

Stopping the circling vultures: restructuring a solution to sovereign debt profiteering

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 virtue of vultures: distressed debt investors in the sovereign debt market

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." Financial speculators, in the meantime, are using scare tactics in a campaign to undermine the country's economic well-being.

Argentina and U.S. lock horns amid 'default' fallout

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.

Jubilee aims to ease grenada's debt crisis

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.

H&T 'ponders Albemarle & Bond bid'

AN American 'vulture fund' is reportedly circling stricken HMV in a move that could see it become one of the retailer's biggest creditors.

US fund eyes up HMV

AN American vulture fund is reportedly circling stricken HMV in a move that could see it become one of the retailer's biggest creditors.

Apollo in pole position as investors circle HMV

(2.) Zambia Loses "Vulture Fund" Case, BBC NEWS (Feb.

Lawsuits and empire: on the enforcement of sovereign debt in Latin America

Carlton, Prudential launch $500 million vulture fund

New ventures

He said: "Despite the credit crunch and the reluctance of some banks to fund commercial property, REI has refinanced part of its debt-free property portfolio and released a further pounds 20 million which, together with existing cash and bank facilities, will provide it with pounds 100 million of firepower to capitalise on commercial property opportunities in the present market, effectively creating a specialist regional vulture fund."

REI poised to swoop on deals; COMMERCIAL PROPERTY

Before the deal could be finalized, a vulture fund stepped in and bought the debt from Romania for less than 84 million.

"10 Best Censored"

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