Distressed securities can be risky

Thames River Investments (TRI) has launched a fund which invests in distressed securities. Distressed securities are stocks of a company undergoing, or expected to undergo bankruptcy or restructuring in an effort to avoid insolvency. As a result, the prices of these securities fall as the holders, reacting emotionally to the threat of potential bankruptcy or financial distress, panic sell, sometimes ignoring the underlying worth of the company. As investments, distressed securities can be risky as the company may not recover The Thames River Distressed Focus Fund accesses four debt manag...