Marathon zooms in on distressed debt in Europe

[NEW YORK] Marathon Asset Management has gained a reputation for being a rag-and-bone picker, finding opportunities in the aftermath of financial disaster.

Marathon, an US$11 billion hedge fund, is going scavenging in Europe with a new fund dedicated to distressed debt on the Continent, hoping to profit from improving economic prospects in the region.

The US$530 million fund was opened on Jan 15 and will start with investments in Spain, Germany and Ireland, according to someone familiar with the fund's strategy.