Vulture funds rightly resembles the trait of vulture which feeds itself on dead and decay to sustain and survive, similarly vulture funds are the ones that swoop in to invest in the assets that are of the companies that are near bankruptcy. The working of these funds go by taking extreme bets on distressed debt and high-yield investing. They also deploy legal actions in their management strategies to obtain contracted payouts. These funds are usually managed by hedge funds using different types of alternative strategies to obtain profits for their investors.