Former Bear Stearns Exec. Preps Global Distressed Fund

Jun 11 2008 | 2:00am ET

Global Recovery Investments, a joint venture set up by a former Bear Stearns executive, is prepping its Global Recovery Fund, a distressed hedge fund, for launch in the third quarter with between $10 million to $20 million in assets.

The firm is JV between Vancouver, British Columbia-based Jutland Capital Management, which boasts former Bear portfolio manager Fred Jones, and Chicago-based Andes Capital Group, a minority-owned investment bank. 

The fund has identified investment opportunities in several distressed sovereign loan and bond assets, as well as emerging opportunities in selected distressed industries worldwide. It will concentrate on buying these exotic securities and bankrupt company bonds, loans and reorganized equity.

“Distressed debt is a bona fide asset class but typically funds have lined up to buy distressed U.S. companies and I think they’re taking a more extended high-yield approach,” said Jones, portfolio manager and managing director at Jutland.

“Our philosophy about distress is that it means one is going to have to sit and deal with recapitalizations and true bankruptcy scenarios. The contents of our portfolios are going to be biased mostly outside of the U.S., meaning Asia, Africa and Canada, which gives us a multi-currency profile.”

The fund will hold between 25 and 40 names, and will sport a two-year lockup period. 
 
Jones said the global forestry sector currently represent a sizeable opportunity because of the housing crisis that has spread from the U.S. and around the world.

“What appears to be happening at the very moment is securities in that sector are coming up under a lot of pressure on top of the tightening of credit,” he said.

Prior to founding Jutland, a fixed income and currency shop, Jones spent nearly eight years with Bear Stearns, where he managed global investment grade and global distressed portfolios for foundations, companies and high net-worth investors.


In Depth

JOBS Act Propels Real-Estate Crowdfunding Platform

Oct 21 2014 | 2:57am ET

If D.J. Paul were a real estate development, he would be described as “multi-use...

Lifestyle

Balyasny Pays Over $6M For Lakefront House

Oct 22 2014 | 10:29am ET

A venture headed by hedge fund manager Dmitry Balyasny just paid $6.2 million for...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.