Distressed investment specialist Schultze Asset Management eyes ‘late stage’ catalyst trades

Founder George Schultze said the best opportunities in the distressed investing space during 2021 are likely to be in post-reorganisation equities, which offer event-driven return catalysts such as spinoffs, M&A, special dividends, and stock buybacks.

“Post-distress equities are those stocks that formerly went through a reorganizasion and/or recapitalsation as a result of their prior distress – this phase represents the ‘late stage’ bucket of investing in distressed deals,” Schultze told Hedgeweek.

“These catalysts will help drive the values for select post-reorganisation names up closer to fair value.”

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