Chinese Company Restructuring Draws Big Funds

Here’s a dramatic instance of distressed debt investing on a global stage.

Iowa Farmers Bet on Middle America

Chidem Kurdas

When people look for investment areas that are not crowded, one possibility is small business development. Few investors have the required expertise or patience. Certain geographies are more underserved than others in this respect and hence offer greater opportunity.

A few private equity and hedge funds specialize in small firms and regions that don’t get attention from big financial players. Often the managers and their investors are connected to those areas.

Thus the Iowa Corn Growers Association is setting up a fund to take advantage of attractive financing transactions in Middle America.

Cooperman Boosts KKR Position

Chidem Kurdas

Amid the excitement about the coming initial public offering of private equity giant Kohlberg Kravis Roberts & Co., the already publicly-traded credit fund managed by the firm, KKR Financial Holdings, appears to have slipped some pundits’ minds.

But Leon Cooperman of Omega Advisors has KKR Financial very much on the mind, judging from his recent buying.

Former Citadel Traders May Cash Out

Chidem Kurdas

Solar Capital’s backers – well-known names in the hedge fund industry – have waited for years.  Will they exit in the coming months or stay in a holding pattern?

Cramer, KKR, Cooperman and Converts

Chidem Kurdas

Last Friday Jim Cramer recommended KKR Financial Holdings, the publicly-traded credit vehicle from private equity giant Kohlberg Kravis Roberts. The investment idea came with a couple of warnings.

One, it is speculative. They borrow money to buy debt, Mr. Cramer said. They buy primarily below-investment-grade debt as well as distressed or stressed paper.

Two, the main reason Mr. Cramer says he went for KKR Financial is insider buying—-by KKR chief executive William Sonneborn and notably by Leon Cooperman, long-time equity investor and head of Omega Advisors. Surely a good sign.

Mr. Cooperman is a substantial shareholder. The striking thing, though, is something Cramer did not mention.

Money Flows: Evidence from Calamos

Chidem Kurdas

Calamos Asset Management, primarily a mutual fund manager that started as a convertible bond specialist but over time diversified into equities and other bonds, also runs hedge fund strategies. These apparently are attracting investors.