GLG launch seeks strong upside from distressed debt

GLG Partners has launched a new fund targeting the debt of struggling UK and European companies.

According to the Financial Times, GLG has followed the growing trend for hedge fund managers in adopting distressed strategies with potentially huge returns. Managed by Galia Velimukhametova, former head of US hedge fund King Street Capital's European operations, the fund's focus is on tradeable and liquid securities, avoiding the protracted restructurings which are preferred by more "activist" distressed investors. The fund already manages about $300m of clients' money, sources told the FT. Since July last year, it had been run internally within GLG's existing credit and market-ne...