distresseddebt1

Hedge funds are alternative investments using pooled funds that employ numerous different strategies to earn active return, or alpha, for their investors. Hedge funds may be aggressively managed or make use of derivatives and leverage in both domestic and international markets with the goal of generating high returns

Distressed debt refers to bonds bought from companies that are either in bankruptcy or on the verge of it. These companies simply have too much debt to continue operating, which is a major cause of failure for many businesses.