Special Situation Investing in Financially Troubled and Distressed Companies
In Forbes, George Schultze explores Puerto Rico’s financial situation in the aftermath of the devastation caused by the most destructive hurricanes in recent memory and the federal government’s disaster response efforts. Read the full article for George’s insights into the territory’s financial health, and see why investors need to expect the unexpected.
In his latest article for Forbes, George Schultze dives into the Toys ‘R’ Us bankruptcy, the third-largest retail industry bankruptcy of all time. George explains why the news wasn’t shocking to most investors, and looks into the industry and company factors that contributed to this bankruptcy. Read the full article for more!
Even the best business plan can fail to account for every potential negative occurrence. A seemingly one-time natural disaster, like Harvey or Irma, makes that point all too clearly but companies can also be affected by other unforeseen disasters that have nothing to do with weather. In George Schultze’s latest piece for Forbes, he delves into why explains that companies that have relied too much on leverage and stretched their borrowing to the limit will find it difficult to get back on their feet.
Tune into Bloomberg Markets AM with Pimm Fox and Lisa Abramowicz to hear George Schultze’s latest insights about distressed opportunities he is seeing, including sector-specific trends as well as top company picks. The full interview can be found at the below link:
In George Schultze’s latest article for Forbes, he points out that many investors are using short cuts to manage their portfolios and thereby taking more risk than they may realize. George explains why this phenomenon is occurring and identifies trends that individual investors should look out for. Read the full article at the link below.
In this Forbes article, George Schultze notes that the economic expansion the Trump administration predicted is less than expected. However, he believes there are many opportunities available for potential profit in the markets for those who do their homework.
Amid the release of emails by Donald Trump Jr., the Dow Jones Industrial Average dropped about 160 points in 20 minutes, according to Elena Popina and Oliver Renick at Bloomberg News. George Schultze also weighs in on the situation. Be sure to follow the link for the full article.
In his latest article for Forbes, George Schultze discusses why, amid the Fed’s slow-but-steady tightening and the U.S. government’s slow-but-likely fiscal expansion and tax cuts, he expects the U.S. economy to keep growing. Additionally, George delves into why lower default rates do not necessarily translate into fewer distressed securities opportunities. Be sure to read the full article for more insights.
Here’s an excerpt from the full article:
“Many investors have recently questioned the relevance of active money management when lower-cost passive strategies, such as ETFs and index funds, have outperformed significantly in the last few years. However, active investment will always be relevant because it can provide non-correlated return diversification, a benefit that can be particularly important now after so many years of good market performance. In fact, the more money that flows into passive strategies, the more likely it is that new market inefficiencies will develop that can be exploited by smart active managers. This is particularly true for distressed securities investing, a specialized discipline which simply cannot be replicated through passive management. At its heart, distressed securities investing is the ultimate value investment strategy and one of the few places left where inefficiencies, such as those created by forced sellers, misunderstood litigation, or complex restructurings, can yield event-driven profits.”
You can read the rest of the article in full at Forbes.
As Puerto Rico files for the largest ever US local government bankruptcy, George Schultze brings his expertise to the table and weighs in on the situation in a Reuters article by Nick Brown.
http://www.reuters.com/article/puertorico-debt-bankruptcy-idINKBN17
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In his latest commentary for Forbes, George Schultze takes a look at macroeconomic conditions, and the possibility of a rising rate environment, to explore the opportunities available for distressed investors.
Rising Rates Should Create Ample Opportunities for Distressed Investors