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Is anyone aware of a fund using a strategy of investing in distressed securities? Mutual Shares did this very effectively in the 70's and 80's when Max Heine was at the helm during some very difficult market periods. Surely there is a small shop uncovering hidden values behind the securities of bankrupt companies.
TFCVX would be one of them. But the original manager is gone. Also, FWIW, the opportunity set diminished greatly since '09/10. For those that remain, there is a bunch of distressed shops (HF's) that bid the price and they are not that cheap. Finally, if you do venture there, take the stake from your equity allocation, not fixed income. the beta is close to 1.
Mutual Series funds continued the same approach with Heine's protege Michael Price, and has continued the same path with its successors at Franklin since then. Following the lineage, one might also look at Wintergreen (WGRNX).
Picking up on fundalarm's thinking, one might also look at Fidelity Leveraged Company (FLVCX) fund.
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Picking up on fundalarm's thinking, one might also look at Fidelity Leveraged Company (FLVCX) fund.
And didn't I already say all of this