Launches & Closures Hedge Funds

Cerberus carves out RMBS offering


The firm has created a new hedge fund for its high-performing RMBS strategy.

Cerberus Capital Management is capitalizing on its successful residential mortgage bets by creating a new hedge fund focused on the housing market.

The recently launched Cerberus RMBS Opportunities Fund invests in both agency and non-agency mortgage backed securities and loans, using the same team and strategies that helped bring the distressed-focused money manager back to health following financial crisis losses tied to stakes in Chrysler and GMAC.

As of October 1, Stephen Feinberg-led Cerberus had $1.2 billion of $22.4 billion invested in real estate funds, according to draft marketing materials obtained by AR. Those mortgage assets have performed