| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 29.60 | 5820 |
| Intrinsic value (DCF) | 0.28 | -44 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 17.50 | 3400 |
NB Distressed Debt Investment Fund Limited (NBDX.L) is a Guernsey-domiciled, closed-ended fixed income mutual fund managed by Neuberger Berman Europe Limited. Specializing in distressed and special situation credit-related investments, the fund targets senior and senior secured debt with collateral and structural protection. It focuses on companies undergoing financial stress, liquidity crises, or corporate restructuring events such as mergers and divestitures. Launched in 2010, the fund operates globally across diversified sectors, benchmarking its performance against the HFRI Distressed/Restructuring Index. With a market cap of approximately $49.2 million, NBDX.L is listed on the London Stock Exchange (LSE) and caters to investors seeking exposure to high-yield, high-risk distressed debt opportunities. The fund’s strategy leverages Neuberger Berman’s expertise in alternative credit markets, positioning it as a niche player in the financial services sector.
NB Distressed Debt Investment Fund Limited offers a high-risk, high-reward investment proposition focused on distressed debt and special situations. The fund’s negative revenue and net income in recent periods reflect the volatile nature of distressed debt markets, though its positive operating cash flow ($17.6 million) suggests active portfolio management. With no debt and $14.4 million in cash, the fund maintains liquidity, but its negative EPS (-$0.0993) and reliance on distressed market cycles pose risks. The dividend yield (approximately 1.4%) provides some income appeal, but investors must weigh the fund’s niche strategy against broader market uncertainties and the cyclicality of distressed assets. Suitable for sophisticated investors with a high-risk tolerance.
NB Distressed Debt Investment Fund Limited competes in a specialized segment of the asset management industry, targeting distressed debt and restructuring opportunities. Its competitive advantage lies in Neuberger Berman’s deep expertise in alternative credit and its ability to identify undervalued, high-potential distressed assets. The fund’s focus on senior secured debt with collateral protection mitigates some risk, but its performance is highly correlated with macroeconomic conditions and corporate distress cycles. Unlike broader fixed-income funds, NBDX.L’s niche strategy limits diversification, making it more volatile. Competitors often include larger distressed debt funds or hedge funds with similar mandates but greater scale and resources. The fund’s small size ($49.2 million market cap) may restrict its ability to compete for larger distressed opportunities, though its agility could be an advantage in smaller, overlooked deals. Its benchmark, the HFRI Distressed/Restructuring Index, suggests it targets absolute returns rather than outperforming traditional fixed-income indices.