Turn-Around Funds: Apollo and Appalossa's Woes

Turnaround private equity funds that purchased struggling companies in good times, with leverage, have found that their turnaround plans and suffering the with economy.  Plans that may have worked in good times have no chance in bad.  Apollo Management is an example.  Apollo's turnaround plans for Linen 'n Things may be unreveling and Apollo may be "throwing good money after bad" in continuing to prop up the company's debt.  Another turnaround hedge fund, Appalossa Management, has lost 17 percent last quarter.  Hopeful that Appalossa can turn it around it Carnegie Mellon that has put Appalossa's manager's name, Tepper, on its business school in exchange for $55 million.