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Distressed debt hedge funds performed very badly in both 1998 and 2008, why was that? A. Their returns are negatively skewed. B. Their returns are

Distressed debt hedge funds performed very badly in both 1998 and 2008, why was that? A. Their returns are negatively skewed. B. Their returns are sensitive to widening credit spreads. C. Their returns reached their capacity constraint. D. Their returns rely on short selling equities.

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