What Do You Mean By Vulture Funds?

According to a definition on Wikipedia, “a vulture fund is a hedge fund, private equity fund or distressed debt fund, that invests in debt considered to be very weak or in default, known as distressed securities.” Broadly speaking, we can say that a vulture fund aims to invest in the assets whose prices have been severely depressed in the market. These assets could be of a bankrupt company or a failed business. This done with the goal to identify assets that have been irrationally oversold below fundamental value, or where a positive turnaround is predicted. These assets can have high-risk but potentially high-reward bets.