FrontPoint Partners has hired an investment team from mortgage investment company C-Bass to launch an asset-backed securities (ABS) strategy in the first half of the year. The firm aims to raise at least $500 million in assets for the fund.
The new long/short ABS fund will focus on residential mortgage credit, especially distressed subprime and alt-A mortgage opportunities in the near term. The fund will invest in a diverse range of ABS products, including mortgage-backed securities and loan portfolios, and across securities with different ratings.
The former co-heads of capital markets at C-Bass, a firm which bought and repackaged subprime