Distressed Debt 1 has a Compound Annual Growth Rate (CAGR) of 40.04 %

  Click to see December 2017 DD1 Tear Sheet Performance Distressed Debt 1 has a Compound Annual Growth Rate (CAGR) of 40.04 %. Distressed Debt 1 was Rated the 2nd Best Performing Hedge Fund based on CAGR out of a Database of over 9000 Hedge Funds by HedgeCo.net on 1-19-2018. Distressed Debt 1 believes it is very well positioned for a strong 2018, and the overall market for distressed issues looks to be improving. For more information or questions concerning Distressed Debt 1 (DD1) please ask here, and we will try to get back to you shortly.

Gran Colombia Bondholders Should Vote Against New Plan

Gran Colombia Gold (TPRFF) has reported strong first half of 2015 results, including a 6% year over year increase of revenues and a 25% reduction of all-in sustaining cost (“AISC”), which resulted in an adjusted net income of $0.13 per share, compared with an adjusted net loss of $0.54 per share the first half of the year prior. We expect that the increase in 2015’s gold production, coupled with the reductions in total cash cost per ounce sold and G&A expenses, will continue to result in increased net income. As a result of this, Distressed Debt 1, LP has taken a position in the company’s 5% senior unsecured bonds (the Silver notes, due in August of 2018), and we oppose the company’s debt restructure proposal under the Business Corporations Act Read More …

Our Distressed Debt Selection Process

Our distressed debt selection process After our initial daily screening of global bond issues for yields and maturities:      We review the issuer’s most recent quarter and year end financials and its relative performance to the industry segment it’s within for any signs or indications that their financial woes may have changed course.      If issuers show multiple signs of a turnaround (most do not, as they simply are just waiting for the climate that affected them to improve), we mark only the top 25% of them for further review.      In more intensive review, we compare the debt load to revenues, income, gross profits, cash flow, cash on hand, asset valuations (vs. book valuations), etc.  We believe debt to asset valuation outweighs minimal profits or low coverage ratios.      We then review its Read More …

Distressed Debt Investing

Investing in Distressed Debt Distressed securities may be an attractive investment option for sophisticated investors who are looking for a bargain and are willing to accept some risk. Distressed debt investing combines the best of both worlds — the cash flow of debt investments with the appreciation potential of stocks. While there is no hard and fast rule for what makes a “distressed” investment, it’s generally accepted that distressed debt trades at a huge discount to par value  because the borrower is under financial stress and at risk of default. Distressed securities are debt securities; most often corporate bonds, from companies that are experiencing a high degree of financial pressure. When a company’s ability to meet its financial obligations is challenged, its debt securities might be substantially reduced in value. Read More …