Bids4bonds.com

The Recession that never was?

Patience

Even a stopped clock is correct twice a day.

 

Distressed debt opportunities have been meager. Every body has been able to get cash if needed.

PPA Model Porfolio

Our model portfolio is 60% cash, in a money market fund with a 5% yield. Some ten year government bond etf's. The remainder 40% is invested in about ten stocks that pay fat dividends and could probably appreciate.  There is an election coming up and the Federal Reserve is close to ending raising rates. The market will look good after the current pullback is finished.

Stay invested.

 

 

 

Stephen P. Vlahos

Performance Plus Advisors, Inc. 

Distressed Debt Market Outlook 2012

 

 

                             Investing in European Distressed Debt

                                       Europe Got Problems!

                                           We Know That

 

 European economic and financial woes are well known and has created an opportunity for hedge funds and distressed debt investors. The legal processes surrounding restucturings and bankruptcies are different for the 20 European nations and can make analysis difficult. Large US investors such as Avenue Capital, Appollo Management, Baupost, Centerbridge, Oaktree, Carlyle, KKR, Cerberus and King Street Capital have caught the sent. Notable European restructurings: Thomas Cook, Premier Foods and La Senza. We expect banks in Europe to be selling loans and other assets for the remainder of 2012 and to continue selling during the first half of 2013. With constant headline risk, our advice to investors is to focus on senior debt and invest slowly over time. Investors who invest on value will make money over time. Time will take care of everything. Senior debt in Europe currently trades around 50 cents on the dollar versus about 70 cents in the US. 

                            US Distressed Debt Market Outlook

Over the past two years most hedge funds and distressed debt investors have gotten returns between 0% and +10% annually. Our model porfolio, which has been focused on senior debt, has had a number of high return investment recommendations during this period. They include: Smurfit Stone,Tribune Company, A&P, NewPage Group, Ambac Financial and Ambac Assurance. We continue focus on senior debt of large well known companies such as Eastman Kodak and AMR, avoiding the bottom tranches of the capital structure of companies in Chapter 11 Bankruptcy. As a senior creditor your downside is protected with attractive upside potential. 

                              Distressed Debt Opportunities

Distressed debt investing is a matter of opportunity and execution. Selecting companies that can reward investors with double digit returns is possible but requires investing insight including good research, analysis and timing.

 

 

 

Stephen P. Vlahos

 

Download Performance Graph (1:10-6::12)

 

Performance Measurement For Distressed Debt Investors

 

 Distressed Debt Research at Performance Plus Advisors, Inc.

Professional money managers and hedge funds compare their returns to a benchmark or a index of securities comparable to their funds investing style or asset classes. The index that our Model Portfolio uses as a benchmark is the HFRX Distressed Securities Index, which is provided by:

www. hedgefundresearch.com.

Our Model Portfolio is focused on distressed debt securities, primarily on securities at significant discounts to their value at issuance or at maturity. Most of the securities in our Model Portfolio are either in Chapter 11 proceedings or the perception is that they will be. We expect our Model's returns to be significantly higher than our benchmark because of our proprietary research and trading experience.

Attached is our research performance. We have an enviable research record which spans a decade. Our research is concise and relevant and provides a framework that enables our clients to organize and filter other research and information.

For more information about our research and services contact:

Performance Plus Advisors, Inc.

727-441-1305 ext 203

Stephen P. Vlahos

 

HFRX Distressed Securities Index

2012 YTD    + 3.21 %

 2011           - 8.04 %

2010           + 8.34 %

2009           - 5.60 %

2008           - 30.69 %

2007           + 3.99 % 

 

 

Performance Plus Advisors, Inc.

Distressed Debt Research Performance Graph

Download Performance Graph (1:10-6::12)