Looking back on Peloton's passing

By Josh Friedlander

Tue Feb 26, 2013

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Absolute Return also revisits Angelo Gordon's mortgage push.


One year ago

>> Angelo, Gordon & Co. planned to launch a mortgage fund on March 1 to invest in residential and commercial mortgage-backed securities and asset-backed securities.

Investor demand for exposure to asset-backed securities was, and is, strong. The AG Securitized Asset Recovery Fund, which is a closed-end vehicle, had a target of $300 million but expanded that to $550 million to meet investor demand. In a mixed year for fundraising, that put the new vehicle among the top 15 new funds, by assets, to launch in 2012.

Five years ago

>> Peloton Partners, the London and California-based hedge fund group headed by Ron Beller and Geoff Grant, decided to liquidate its formerly high-performing Peloton ABS credit fund.

The highly-leveraged fund scored big gains early on, returning nearly 87% in 2007 before suffering from a dramatic reversal in its long mortgage bets.

Co-founders Ron Beller and Geoff Grant went separate ways. Beller founded Branch Hill Capital, a financials-focused long/short equity fund in San Francisco that produced a net annualized return of about 20% from its August 2010 launch through early 2012. More recent returns were not available.

Beller's LinkedIn profile lists affiliations with several educational endeavors. Among these, he is a co-founder of Caliber Schools, and partner at Ed-Mentor, which the profile describes as an "Ed-Tech Investment Fund." He declined to comment.

Grant launched Grant Capital Partners in 2009 to trade interest rate derivates, currencies and other liquid instruments. The flagship Liquid Macro fund, was down 6.2% through October 2012, and Grant decided to close it down citing the lack of an "edge," according to the Financial Times. The fund had reportedly generated a total return of 7.39% since inception. 

"Going to trek to Everest base camp in April," wrote Grant in an email when asked about his plans. "Pretty much done with the business at this point -- 32 years seems like enough. Too old a dog to learn the new tricks!"

ISSN: 2151-1845 / CDC10004H