Arrow Hedge Partners Inc. says the Arrow Distressed Securities Fund is now available to investors as a separate purchase. The fund is advised by Schultze Asset Management LLC based in Purchase, New York.

Schultze has been managing the fund since its inception in July 2003, but until now it was only available for investment as part of the Arrow Multi-Strategy Fund and the Arrow Global Equity Long/Short Fund.

The fund will have a capacity of approximately $125 million in assets.

The fund’s investment objective is to achieve superior capital appreciation through special situation investing in distressed and financially troubled companies. The manager invests primarily in U.S. distressed debt and equity securities. The manager follows a “bottom up” value investing strategy, selecting both long and short positions using fundamental analysis, to identify grossly undervalued securities from distressed firms where the manager believes a catalyst exists for value realization. The manager will invest at any point in the reorganization process including pre-bankruptcy, during the bankruptcy re-organization as well as in post bankruptcy securities, at all levels of a firm’s capital structure.

The portfolio typically holds 60 to 75 positions.