Jeff Altman's Flagship Fund Jumps 21% on Distressed Bets
- Fund’s best trades said to include Toys ‘R’ Us, Yahoo, Caesars
- Altman says Fed, ECB pullback will create more opportunities
This article is for subscribers only.
When Toys “R” Us caught credit traders off guard with its sudden plunge into bankruptcy, Jeff Altman locked in gains from the unraveling after betting against the retailer by stacking up credit-default swaps.
It was one of a handful of timely bets on out-of-favor companies that powered Altman’s Owl Creek Asset Management to big returns in 2017, according to people with knowledge of the matter. The firm’s $1.6 billion flagship Overseas Fund, which invests across the capital structure from equities to bonds and even derivatives, posted a 21 percent advance for the year.