Schweser QB 47223

Ben Leesom, CFA, thinks distressed securities are appropriate for one of his clients. If liquidity is important for the client, then Leesom should recommend: A) investments with either a hedge fund structure or a private equity structure. B) an investment with a private equity structure over a hedge fund structure. C) neither an investment with a hedge fund structure nor a private equity structure. D) an investment with a hedge fund structure over a private equity structure. Answer is D - Distressed securities can be divided by the two indicated structures. Hedge fund structured investments are usually more liquid than investments in distressed equity using the private equity structure. Stil don’t understand 100% how distressed securities can be structured between hedge fund or private equity. Can someone explain better than Schweser? Thanks,

this question is already discussed in another thread, here’s the link:,668476,668537#msg-668537

Thank you!