Emerging markets could give distressed funds a good boost

DISTRESSED SECURITIES

The more fragmented nature of emerging markets could make this area within thedistressed sector more profitable in the coming months, however the outlook fordistressed generally is not overly optimistic.

Glenn Baggley, chief executive at London fund of fund manager Eddington CapitalManagement, says distressed and credit sensitive funds have had “a greatrun” so far this year, “but we expect them to run out of steam fairlysoon.

“The mania for launching credit funds is a classic sign of a strategy th