Hedge Funds

Deerfield seeks seed investor for new mortgage offering

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Deerfield Capital Management, the Chicago-based multistrategy firm with $862 million of hedge fund assets, is looking for seed investors to back a new mortgage fund. The firm would like to raise $50 million for the strategy, which will aim for returns in the low teens by exploiting arbitrage opportunities among agency and non-agency mortgage backed securities.

The firm was successful in running a similar strategy as part of a managed account that it ran until last year on behalf of its majority owner, Triarc Companies. The new fund would be managed by Jim Snyder, a managing director who