Distress Investing: Principles and Technique (Wiley Finance) [Hardcover]

Martin J. Whitman (Author), Fernando Diz (Author)

Book Description

Publication Date: April 13, 2009 | Series: Wiley Finance (Book 397)

Praise for Distress Investing

"Marty Whitman has distilled decades of distressed investing experience into a text that is a must-read for everyone interested in the field, whether a student or a professional investor."
—Wilbur L. Ross, Chairman and CEO, WL Ross & Co. LLC

"Distress Investing: Principles and Technique represents a detailed and unique perspective on an arcane arena of investment that is going to get a lot more attention. Marty Whitman is the master, and has set the standard for many years."
—Sam Zell, Chairman, Equity Group Investments, LLC

"Martin Whitman and Professor Diz have produced a seminal work on the ins and outs of distressed investing for all distressed debt investors. It is jam-packed with information and guidance for the novice and the experienced. A must-read for anyone interested in distressed investing."
—Lewis Kruger, Stroock & Stroock & Lavan LLP

"Marty Whitman, a legend in distress investing, packs decades of experience into these pages. The restructuring of the capital markets currently under way is sure to provide great distress investment opportunities, which this guide book can make count for you."
—Bruce Flatt, Brookfield Asset Management Inc.

"The principles found in this book are those I used in the reorganization of my business from bankruptcy to an S&P 500 company with an investment grade rating and a multibillion-dollar market capitalization. An excellent premier by Marty Whitman and Professor Diz, integrating economic theory with real-world investment to help investors of all shapes and sizes understand and invest in distressed securities."
—Gene Isenberg, Chairman and CEO, Nabors Industries, Inc.

"Marty Whitman, the unquestioned 'Dean' of active distressed investors, and Fernando Diz, one of the few academics specializing in distressed investing, have teamed up to provide perhaps the best and most comprehensive primer on distressed securities and markets. I learned so much from this remarkable volume."
—Edward I. Altman, Max L. Heine Professor of Finance, NYU Stern School of Business, Director of credit and debt markets research at the NYU Salomon Center and adviser to several financial institutions including, Paulson & Co. and Concordia Advisers

Editorial Reviews

Review

“…this is the best book that I have read since The Black Swan…do yourself a favor and pick up a copy; you'd be crazy not to.” (SeekingAlpha.com, June 11, 2009)

From the Inside Flap

Financial innovation, new laws and regulations, and the financial meltdown of 2007-2008 are just a few of the forces that have shaped, and continue to shape, today's distress investment environment. Combine this with the fact that the discipline of distress investing doesn't always follow what conventional wisdom says, and you can see why it is one of the most challenging areas in finance.

Nobody understands this better than Martin Whitman—the legendary founder of Third Avenue Management LLC and a pioneer in the field of distressed markets—and leading academic Dr. Fernando Diz of Syracuse University. That's why they decided to write Distress Investing. As an outgrowth of annual distress and value investing seminars the two have taught together at Syracuse University's Martin J. Whitman School of Management, this reliable resource will help you gain a better understanding of the essential principles and techniques associated with distress investing and show you how to effectively apply them in the real world.

Divided into four comprehensive parts—the General Landscape of Distress Investing, Restructuring Troubled Issuers, the Investment Process, and Cases and Implications for Public Policy—this book comprehensively covers the practice of buy-and-hold investing in distressed credits, whether it be performing loans or the reinstated issues of a reorganized issuer.

From the recent changes to U.S. bankruptcy code and creditor rights to cash bailouts, you'll quickly learn how to analyze distressed situations such as pricing issues, arbitrage opportunities, tax disadvantages, and the reorganization of funding plans. Along the way, case studies of both large and small distress investing deals—from Kmart to Home Products International—will give you a better perspective of the business.

Critical topics addressed throughout these pages include:

• Chapter 11 bankruptcy and why it's not considered an ending, but rather a beginning when it comes to distress investing

• The "Five Basic Truths" of distress investing

• The difficulty of due diligence for distressed issues

• Distress investing risks from reorganization risk to risk associated with the alteration of priority of payments in bankruptcy

• Valuing companies by both going concern as well as their resource conversion attributes

In today's turbulent economic environment, distress investing presents some enticing opportunities. Put yourself in a better position to excel at this endeavor with Distress Investing as your guide.

See all Editorial Reviews

Product Details

• Hardcover: 272 pages
• Publisher: Wiley; 1 edition (April 13, 2009)
• Language: English
• ISBN-10: 0470117672
• ISBN-13: 978-0470117675
• Product Dimensions: 9.1 x 6.3 x 1.1 inches
• Shipping Weight: 15.2 ounces (View shipping rates and policies)
• Average Customer Review: 4.0 out of 5 stars  See all reviews (9 customer reviews)
• Amazon Best Sellers Rank: #410,206 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

15 of 16 people found the following review helpful:

5.0 out of 5 stars Timely Release, May 27, 2009

By 

Interested Investor (NY USA) - See all my reviews

This review is from: Distress Investing: Principles and Technique (Wiley Finance) (Hardcover)

Fernando Diz and Martin Whitman's Distress Investing is a practical tool to both beginner and experienced investors. Today's worldwide economic downturn has created attractive investments for distressed investors which makes this book a timely release. Distress Investing guides the reader step by step from defining distressed debt to valuation. Understanding creditor's rights and bankruptcy law allow distressed investors to capitalize on investments that are overlooked by individuals who are not knowledgeable of their securities' rights. In addition, it offers insight into many of Martin Whitman's strategies that he has employed during his long successful career of investment finance. Distress Investing is well written and provides excellent examples that make it an easy read. I would recommend this book to any individual looking to expand their knowledge base beyond equities.

7 of 8 people found the following review helpful:

5.0 out of 5 stars Best book on the subject, August 14, 2009

By 

Mariusz Skonieczny "Author" (Schaumburg, IL) - See all my reviews
(REAL NAME)   

This review is from: Distress Investing: Principles and Technique (Wiley Finance) (Hardcover)

I picked up this book because with the current economic crisis, it seems like anywhere I turn I am finding incredible deals. This book, however, focuses on distressed debt which is not specifically my specialty, but I definitely learned a lot from it.

The author discusses topics such as Chapter 11 reorganization, securities' rights, and the workout process. Because these special situations add another complexity level to investing, there is not that much competition from institutional investors so the opportunities for above average returns are plentiful. I would recommend this book to serious investors.

- Mariusz Skonieczny, author of Why Are We So Clueless about the Stock Market? Learn how to invest your money, how to pick stocks, and how to make money in the stock market

12 of 15 people found the following review helpful:

2.0 out of 5 stars Too difficult for the layman on the subject, March 15, 2010

By 

Frederik Vanhaverbeke (Belgium) - See all my reviews
(REAL NAME)   

Amazon Verified Purchase

This review is from: Distress Investing: Principles and Technique (Wiley Finance) (Kindle Edition)

The book may be good for people who are very familiar with distress investing, but honestly that I can not judge. What I can tell is that the book is totally unsuitable for people unfamiliar with the subject. I stopped reading the book somewhere in the middle (and that is the first book in a list of about 70 on investing (or trading) where I gave up) because I was overwhelmed by the jargon and the descriptions of laws surrounding distress investing. I had the impression that it was more a book for lawyers and other people involved in the legal aspects of bankruptcies. But it is definitely not suited for common stock investors. If you don't have THOROUGH knowledge of the field, the book is certainly not for you.