Back in 2009, Silver Point Capital was not exactly popular
with investors. Its clients had just suffered through a huge,
35 percent drawdown, from June 2007 through December 2008, and
some investors felt the credit and distressed-debt firm had
become too big and that its strategies had run their course.
Investors were frustrated with Greenwich, Connecticut-based
Silver Point's historical lockup and liquidity terms, which
only permitted them to redeem their money once a year. And like
many hedge funds at the time, Silver Point irked some clients
when it used side pockets for some of its very illiquid assets,
although they subsequently performed well and have since been
Since then Silver Point, founded by Goldman Sachs Group
alums Edward Mule and Robert O'Shea, has rebounded, riding the
bull market in credit that...