Wall Street legends Joseph Perella and Peter Weinberg have struck gold once again.

Xerion Capital Partners, the hedge fund acquired by their boutique investment bank, Perella Weinberg Partners in October has returned 24% this year.

Xerion, a distressed debt fund which manages some $837 million, including $100 million from Perella Weinberg, profited from betting against investment-grade bonds issued by financial services firms, Bloomberg News reports. And the hedge fund expects the good times to continue to roll.

“We expect the present distressed-credit cycle to be deeper and longer than the preceding one in 2002,” Daniel Arbess, the founder of Xerion, wrote in a letter to investors, thanks to a “moribund U.S. economy, a smaller financial system with much tighter credit underwriting standards and a globally-induced cost-price squeeze.”

Xerion has posted annualized returns of 24% since its founding in 2003, and returned 38% last year.

The letter also announced the hiring of Victor Consoli from Bear Stearns as a senior member of the investment team. Consoli, who joined Xerion last month, is a former co-head of credit strategy at Bear, which was acquired by JPMorgan Chase in May.