DDJ Capital Management has hired a senior research analyst from Putnam Investments to bolster its bench as the Wellesley, Mass.-based fund rolls out new funds.
Patrick Flynn co-managed a portfolio of distressed securities, primarily covering the utilities sector at Putnam. He was also covering distressed names in the media/cable, healthcare, chemical and financial sectors.
Mike Forrester, chief operating officer, said there has been a growth in assets fuelled by strong performance in 2003 and 2004. In 2004, hedge funds specializing in distressed debt earned an average 15.62%, the highest in the industry, according to the CSFB/Tremont Hedge Fund Index.
DDJ is currently launching a new $212 million fund to invest in bank debt, debtor-in-possession loans, second-lien term loans and Chapter 11 exit financings, called the DDJ Total Return Loan Fund (LMW, 1/28) and also recently raised a controlled distressed debt fund. It now manages approximately $2.8 billion on behalf of 73 U.S. institutional clients
DDJ previously had analysts covering Flynn's sector, but this enables the research to be spread around. Flynn is the fourth hire DDJ has made in the past year. Flynn was not available for comment and calls to Nancy Fisher, a spokeswoman for Putnam, were not returned. DDJ was formed in 1996 by Fidelity Investments officials David Breazzano and Judy Mencher.