In Response to Rolta’s Restructuring Support Agreement

        In Response to Rolta’s Restructuring Support Agreement  Announced February 13th, 2018 Rolta (NSE: ROLTA) has recently announced the signing of a new Restructuring Support Agreement (RSA) in which Senior Bondholders could essentially receive a worst case remittance of principle at 53 cents on the dollar.  Even worse, Rolta has failed to remit or even address the years of unpaid accrued interest owed to bondholders on their defaulted senior notes, which is now close to 20 cents per dollar of bond principle.  This whole time, stockholders that are legally in line behind debt holders have felt no pain. We also found the language Rolta used in their offer to be very devious, where many might get the wrong impression and consider this a done deal.   An example Read More …

Why Small Hedge Funds Have Historically Outperformed Their Larger Brothers – An Analysis by Distressed Debt 1 Hedge Fund

                    Historically, smaller hedge funds have fared better during periods of financial stress than large hedge funds Two thirds of global hedge fund assets are managed by only the top 6% largest of all hedge funds Numerous studies have found that, over time, smaller hedge funds & emerging managers outperform the returns of larger hedge funds & established managers   With the largest hedge funds (those with AUM ≧ $1 Billion) managing an estimated 90% of the roughly $3 Trillion in global hedge fund assets (1), one may begin to wonder if there is too much money chasing too little talent.  To put this figure into perspective, there are fewer than 400 hedge funds considered to be “large”, while there are Read More …

Cumulus Media’s Restructuring Proposal Unfairly Favors Banks – An Analysis By Distressed Debt 1 LP Hedge Fund

We at Distressed Debt 1 LP, and Durig Fixed Income 2, would like to present an explanation of the underlying issue with Cumulus Media (CMLS) current restructuring proposal, as we see it. First let’s get an understanding of its valuation. Last quarter’s EBITDA for Cumulus Media was reported at $61.8 million.  Radio media companies historically trade above ten times EBITDA, especially for those growing profits.  Since the new management has been involved, the company’s bottom line is growing.  So, we will use a simple 10x’s multiple.  As the run rate of last quarter’s EBITDA was $61.8 million, multiplying times 4 quarters, times ten,  gives an enterprise valuation estimate of around $2,472 million. There are two debt issues outstanding, the first being $1,728 million in notes, and the other being $610 Read More …

Distressed Debt Hedge Funds Can Deliver Surprising Performance

              We just celebrated two years of the Distressed Debt 1 LP Hedge Fund!   As one of the top performing Hedge Funds, Distressed Debt 1 LP is managed by Randy Durig, who has published articles  online for over two years,  and we would like to update our readers on our market perspective and reasons for the hedge fund’s outstanding performance. Distressed debt is often uncorrelated with traditionally composed portfolios and equity markets, and when actively managed as an asset class, has been a top performing security class as judged by these historical studies: Distressed Debt as an asset class  has historically outperformed the S&P 500 TR Index Numerous studies have shown that Distressed Debt as an asset class has consistently surpassed the returns Read More …

Distressed Debt 1 Hedge Fund Celebrating Two Years of Success

We are proud to celebrate two years of the Distressed Debt 1 Hedge Fund!  The performance generated in the first two years was so strong that we were recognized for our success by various industry ranking agencies and third party analytic firms. During our first 2 years ending September 31 2017: Cumulative return was 199.16% Our compound rate annually was 53.83 % Our Beta was  – 0.83 Our Alpha was  4.76 %