For which of the following strategies would a manager concentrate a hedge fund's investments in securities that are being offered at deep discounts?
A)market neutral
B)arbitrage
C)distressed securities
D)macro
E)market timing

Question

Quizplus · Accepted Answer

Concentrating a hedge fund's investments in securities that are being offered at deep discounts is a strategy known as distressed securities. This involves investing in companies that are experiencing financial difficulties or are in bankruptcy, but have the potential for a turnaround. By buying these securities at a deep discount, the hedge fund manager can profit if the company's financial situation improves and the securities increase in value.

For Which of the Following Strategies Would a Manager Concentrate