HONG KONG (Reuters) - Opportunities to scoop up bargains in distressed debt in Asia are growing to the best levels in a decade, said hedge fund manager ADM Capital, which aims to raise about $1 billion in fresh funds this year.
Robert Appleby, the fund's chief investment officer, told a Reuters Hedge Funds and Private Equity Summit in Hong Kong that valuations were most attractive in China and India, while Australia and Turkey also provide rich pickings.
ADM Capital, which runs five funds managing around $1.9 billion, was set up in 1998 following the Asian financial crisis with the objective of investing in the region's distressed assets and special situations.
"Today is one of the most spectacular opportunities for distressed investing that we have seen in Asia," he said while adding that ADM Capital would raise up to $700 million under the Maculus family of funds and around $250 million under the ADM Galleus fund, its oldest.
The ADM Galleus fund, which has assets of $909 million under management, posted a return of 14.06 percent in 2007, beating the CSFB Global High Yield Bond Index, according to its monthly report.
The fund invests in distressed, undervalued and event driven opportunities mainly in Asia, with loans comprising nearly two-thirds of its assets.
CHINA, AUSTRALIA
Appleby said several Chinese property and manufacturing companies would face debt repayment difficulties while the Australian market also held a lot of promise for distressed debt investors.
"China is the home of the largest pool of non performing loans in the world today and Australia is the newest big opportunity," said Appleby who has had stints with Credit Agricole Indosuez and Lehman Brothers. Continued...
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