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Hedge Fund LIM Focusing More on Distressed Trading in Asia

Reported by Bloomberg
Oct 26, 2020· 2 min read
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Key Takeaways
  • • Hong Kong-based hedge fund LIM Advisors is increasing its focus on buying high-yield and distressed bonds and loans across the Asia-Pacific region, according to Bloomberg.
  • • LIM Advisors is reportedly planning a new $200-$500 million fund that would build on trading strategies developed in its flagship $460 million LIM Asia Arbitrage pan-Asian multistrategy fund.
  • • The shift toward distressed credit reflects broader interest among Asian managers in dislocated credit markets following the Covid-19 downturn in 2020.
  • • Full article details were not retrievable; the summary relies on headlines and brief snippets from the publisher and related coverage.
Summary
Hong Kong-based hedge fund LIM Advisors is focusing more heavily on buying high-yield and distressed bonds and loans in the Asia-Pacific region, according to Bloomberg. The strategy shift points to a growing emphasis on credit dislocations in the region as market conditions have driven valuations lower for stressed debt.

According to Bloomberg coverage, LIM Advisors is also preparing a new fund in the range of $200 million to $500 million. The vehicle would build on trading strategies developed in the firm's flagship $460 million LIM Asia Arbitrage fund, a pan-Asian multistrategy vehicle. The size range indicates the target has not been finalized.

The move fits a broader pattern among investors in 2020, as private capital and hedge funds have sought opportunities created by the Covid-19 downturn. Industry commentary cited by related coverage notes that distressed investors typically participate through a limited set of approaches, including direct lending, buying discounted debt, and acquiring equity in restructurings.

The full Bloomberg article could not be retrieved, so details on performance, specific holdings, and management commentary are not available in this summary.

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Sources

1 outlet

AlphaMaven summarised this story from the reporting below. Each link opens the original article.

Bloomberg Hedge Fund LIM Focusing More on Distressed Trading in Asia