According to Harsh Roongta of Fee Only Investment Advisers LLP, a balanced advantage fund allows investors to have a measured exposure to equity without timing the market, reducing risk. These funds provide equity-like returns with lower risks compared to pure equity funds. The allocation between equity and debt is determined by a formula, making them counter cyclical.
Distressed investing is often characterized as a cyclical strategy dependent on macroeconomic factors that focuses primarily on the undervalued distressed debt of struggling companies that may require a restructuring through bankruptcy or another form of reorganization.