The Money Times – Short-sellers and hedge funds, though sometimes shadowy, are also sometimes seen as the smartest guys in the room. They did their homework and will bet their capital against the crowd. It’s not the most popular way to go, but the rewards can be quite lucrative.

On Motley Fool CAPS, we have our own brand of investors who found the chinks in a company’s armor and correctly called its fall. "Underdogs" are investors who earned 100 or more CAPS points correctly predicting one or more stocks would underperform the market.

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Tags: armor, chinks, crowd, homework, investors, money, motley fool caps, rewards, short-sellers, smartest guys in the room, stocks

Forbes – The investment banks and global hedge funds that are the usual buyers of debt and equity in struggling Asian companies have largely fled the market, leaving the distressed asset space to home-grown investors.

Local players with the cash — and the stomach — to remain in the hunt for cheap assets find themselves with the luxuries of time, choice and pricing power.

"We’re just taking our time and doing our homework, because a lot of the traditional buyers are not in the market," said Chris Gradel, managing partner at Hong Kong-based Pacific Alliance Group, which runs $1.6 billion in hedge funds.

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Tags: alliance group, asian companies, assets, forbes, gradel, homework, hong kong, investment-banks, investors, local players, luxuries, pacific alliance, stomach, time choice, traditional buyers