I talked to friends in NY who are credit investors in banks with focus on distressed assets and special situations and it seems like hedge funds always need to verify claims, especially in distressed assets and special situations.
I'm really curious to learn more on how people here approach this.
In distressed / special situations especially, there’s often:
* local reporting
* “sources say” headlines
* regulatory or political noise
* fragmented filings
By the time something is confirmed, pricing often moves.
How do you personally validate:
* whether a claim is credible?
* whether it actually impacts valuation?
* whether the source is reliable?
Is it all internal research + calls, or do funds use external workflows/tools for this?
Thanks a lot!