Vulture Fund


Vulture Fund
A fund that buys securities in distressed investments, such as high-yield bonds in or near default, or equities that are in or near bankruptcy.

Even highly leveraged firms may be targeted if there is a chance that the owners will not be able to make all required debt payments. As the name implies, these funds are like circling vultures patiently waiting to pick over the remains of a rapidly weakening company. The goal is high returns at bargain prices. Some people have looked down upon hedge funds that operate like vulture funds, which have preyed on the cheap debt of struggling companies and forced these companies to pay it back, plus interest.


Investment dictionary. . 2012.

Look at other dictionaries:

  • vulture fund — ➔ fund1 * * * vulture fund UK US noun [C] DISAPPROVING FINANCE, STOCK MARKET ► an investment fund that buys shares cheaply in companies that are failing in order to take control, improve their performance, and so make money: »The vulture funds… …   Financial and business terms

  • vulture fund — see fund 2 Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • vulture fund — noun An investment based on mainly hostile bids for poorly performing companies • • • Main Entry: ↑vulture …   Useful english dictionary

  • Vulture fund — As the name suggests, these funds are metaphorically vultures patiently circling, waiting to pick over the remains of a rapidly weakening company or, in the case of sovereign debt, debtor. Market practitioners prefer to refer to them as… …   Wikipedia

  • vulture fund —  An investment fund which speculates in companies or real estate holdings that have declined significantly in value.  ► “MK is in the humbling position of being wholly at the mercy of its lenders, many of which now are vulture fund BOTTOM FISHERS …   American business jargon

  • vulture fund — /ˈvʌltʃə fʌnd/ (say vulchuh fund) noun a fund that takes advantage of a company which is in a weakened state due to failed investments or inability to make debt repayments, by buying up their debts cheaply and forcing the company to repay with… …   Australian English dictionary

  • fund — A fiscal and accounting entity with a self balancing set of accounts in which cash and other financial resources, all related liabilities and residual equities, or balances, and charges therein, are recorded and segregated to carry on specific… …   Financial and business terms

  • Vulture (disambiguation) — A vulture is a scavenging bird.Vulture may also refer to: * Vulture (TV show), a weekly Australian television show * The Vulture (film), a film by Yaky Yosha * Vulture (music band), the translated name of Voltor, a hardcore ska ban from Land of… …   Wikipedia

  • The Peregrine Fund — Founded in 1970 The Peregrine Fund is a non profit organization that conserves threatened and endangered birds of prey. The successful recovery in the United States of the Peregrine Falcon, which was removed from the U.S. Endangered Species List… …   Wikipedia

  • Meirion Jones — is a British journalist working as Investigations Producer on the BBC Two Newsnight programme. In 2010 he won the International Consortium of Investigative Journalists, Daniel Pearl Award for his investigation of the dumping of Trafigura’s toxic… …   Wikipedia


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