Vulture funds are portfolios consisting of stakes in distressed companies. They invest in troubled or distressed companies with the aim of making a profit by turning them around or selling them off at a profit. They usually buy such companies at a discounted price and employ strategies to improve their performance and profitability.

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Vulture Funds Are

Question 68

Multiple Choice

Vulture funds are

A) management consulting firms that employ turn-around specialists.
B) portfolios consisting of stakes in distressed companies.
C) mutual funds that grow by acquiring their competitors.
D) mutual funds that invest only in highly-leveraged transactions.

Correct Answer: