Distressed Debt 1 – HedgeCo’s Top Ranked CAGR of 34.76 % with a Negative Beta of -0.58

  June 2018 Month-End Tear Sheet We are up 0.10% Year-to-Date 2018. . Distressed Debt 1 has a negative Beta of  -0.58   Distressed Debt 1 has an Alpha of 3.40 .. Distressed Debt 1 Hedge Fund – Investor Presentation .. On 6-30-2018, Distressed Debt 1LP had the following rankings by HedgeCo.net (a database that tracks the performance of 9,000 Hedge Funds)   1st for Best Compound Annual Growth Rate (CAGR). 4th Highest Sharpe Ratio (annualized). Distressed Debt 1 (DD1) had the following performance compared to the S&P 500.   We are one of very few hedge funds that have historically outperformed the S&P by over 300 percent, while also producing a negative Beta.   For more information or questions concerning Distressed Debt 1 (DD1), please ask here and we will Read More …

Bloomberg Article on Rolta

Shortly after writing our last article on Rolta India’s restructuring proposal, “In Response to Rolta’s Restructuring Support Agreement“, we were contacted by a reporter from Bloomberg covering the story for a phone interview with Randy Durig.  The notes from the interview can be found below.   Rolta Debt Plan ‘Misguided,’ Better Deal Needed, Hedge Fund Says By David Yong, Bloomberg (Bloomberg) — Rolta India’s plan to restructure about $500m of defaulted notes is unlikely to succeed because it imposes bond haircuts while preserving equity holders, according to U.S. hedge fund Durig Capital, Inc. “The bond restructuring plan is misguided,” CEO Randy Durig says in a phone interview from Oregon. “These past two years, we have been playing a game of rewarding stockholders first at the demise of bondholders”. “In a 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 …