All-Star 2007 Funds: A Q&A With Aurora Capital's Gerald L. Parsky

The year 2007 should in theory have been a great time for investors in distressed debt and turnaround situations to raise money. But those in the trenches say it was easy to get the timing wrong. Start investing too early, before the downturn bottomed out, and firms got stabbed by falling knives; start investing too late and firms saw troubled companies use the resurgent credit markets to delay the day of reckoning.

Managers