Dalton Investments, a $1.1 billion investment manager in Los Angeles, is preparing to launch a hedge fund on June 1 that will invest in distressed mortgage securities. As part of that effort, Dalton has hired Todd Sherer, a former mortgage trader at Countrywide Asset Management, to manage the fund. Prior to joining Dalton, Sherer spent six years at Countrywide, where he managed the mortgage trading desk.
Dalton's new fund will seek to buy distressed mortgage bonds at a discount from traditional buyers being forced to write down or liquidate positions, according to marketing documents. The firm anticipates opportunities