Reuters – Hedge funds will increase their investments in distressed debt and equity this year and expect to make more money doing it, the Reuters HedgeWorld & Dykema 2010 Insolvency Outlook Survey found.
The most attractive areas for distressed investing in the next 12 months will be banking, energy and healthcare, according to the survey by the daily news service HedgeWorld and the law firm Dykema.
Of the 120 hedge fund managers who answered the questionnaire by email in December and January, 65 percent said at least some of their portfolios were invested in financially troubled companies, up from 53 percent in a year-earlier poll.
