Victor Khosla Warns Distressed-Debt Hedge Funds Are Losing Their Edge
- SVP founder says traders tip their hand by buying from Goldman
- He sees plenty of opportunities, plans to invest $4 billion
Victor Khosla
Photographer: Kyle Grillot/BloombergThis article is for subscribers only.
Victor Khosla has a message for his peers in the world of distressed-debt investing: You’re losing your edge.
Buying up beaten-down bonds and loans to take control of troubled companies is supposed to be strategic -- not to mention secretive. Yet some creditors are all too willing to team up in the courtroom. Others are quick to flip their stakes, rather than make a longer-term investment in the companies they helped restructure. And just about all distressed buyers lean on Wall Street to execute their trades.