Elliott Management: The Party Is Over, Companies Are Hanging By A Thread

Hedge fund manager Paul Singer of Elliott Management is looking to raise about $2 billion to invest in distressed debt.

Elliott didn’t do too badly last year. Hedge funds on average lost 19% last year but Elliot lost just 3%. ANd now it is looking to take advantage of a wave of corporate re-structurings the fund sees ahead.

The WSJ got a hold of Singer’s Oct. 15th letter to investors.

From the Wall Street Journal: “Now the party is truly over,” Paul Singer, head of $16 billion hedge fund firm Elliott Management Corp., wrote in a confidential letter to investors Oct. 15. “The economic recovery, virtually regardless of its shape, will not be robust enough to save a number of companies in commercial real estate, retail and other industries.”

“Despite large governmental policy actions, many companies both here and in Europe are hanging by a thread. This will create a pool of new distressed opportunities in the next few months.”

Read more about what Elliott’s investor letter said.

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