DG Capital Wins Big on Distressed Situations — Thanks to Higher-for-Longer Interest Rates [In-Depth]

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Michelle deBoer-Jones
Published on
Updated on
Hazelton Capital Partners

The DG Value Funds returned 4.1% for the first quarter, with their equity investments responsible for 66% of their performance and their credit investments generating the other 34%. Meanwhile, the DG Concentrated Strategy returned 6.1% for the first quarter, with equity holdings contributing 75% of that performance and credit contributing the other 25%.

For comparison, the HFRI Distressed/ Restructuring Index returned 2.57% for the first quarter, while the HFRI Event-Driven Index gained 2.33%. The Russell 2000 rose 5.18% for the first quarter.

First-quarter commentary

In his first-quarter letters to investors, which were obtained by Hedge Fund Alpha, Dov Gertzulin...

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Michelle deBoer-Jones is editor-in-chief of Hedge Fund Alpha. She also writes comparative analyses of stocks for TipRanks and runs Providence Writing Services. Previously, she was a television news producer for eight years, producing the morning news programs for NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spending a short time at the CBS affiliate in Huntsville.