Hedge funds build on mortgage gains
By Lawrence Delevingne
Tue Jul 31, 2012
Firms are piling into the MBS market and putting up lofty returns, but risks remain.
||Source: AR research. All figures as of July 1,
2012. Firm and MBS numbers represent capital in hedge
fund strategies only. Exception: Cerberus firm AUM figure
is comprised primarily of capital in private equity funds
that could not easily be separated from hedge fund
assets. Figures for Marathon, Angelo Gordon, One William
Street, Och-Ziff, York, Hayman, and King Street are
Cerberus Capital Management, Pine River Capital Management
and Canyon Partners are among dozens of firms to earn
market-beating returns this year by investing in mortgage
backed securities. The MBS strategy they employ has become,
almost by default, the most attractive in the hedge fund
Managers have been busy promoting the MBS play all year. "I
simply love the mortgage market. It’s the best
place to be right now," said Steve Kuhn, Pine
River’s mortgage chief, while speaking at the 2012
SALT Conference in May about the...
ISSN: 2151-1845 / CDC10004H
TAKE A FREE TRIAL
The full contents of this article are available to Absolute Return subscribers and trialists only.
To continue reading please, take a free trial, subscribe or log in.
Subscribers have unlimited access to all current and archive content. Start your subscription today - click on the button below.