Vulture funds are the type of hedge funds that invest funds in non-performing companies by buying their bonds or securities in the secondary market at deep discounts and maturity, redeeming them at par or in case of insolvency, by taking legal action to recover the debt which, in turn, gives them the highest returns compared to investing in normal risk securities.

Strategies for vulture funds

This involves many strategies. Some of them are:


This involves many strategies. Some of them are:


A vulture fund is the type of fund that invests money in the securities of companies that are close to bankruptcy due to a massive loss. It recognizes these companies through research and invests in companies whose assets have a present value. the fund first tries to settle with the companies if the company is unable to pay, then the fund will either sell the asset or take legal action for recovery.

The two countries, Argentina and the Democratic Republic of Congo, have recently faced the legal problem of a vulture fund due to the inability to pay government bonds. Vulture funds typically invest in higher risk stocks to earn higher profits. This is the part of hedge funds, but the scope of hedge funds is wider. The most crucial point of the vulture fund is that the whole process is legal.


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