Performance profile: Shorts lift MKP Credit


MKP Capital Management's credit sensitive mortgage-backed securities fund started the year on firm footing, thanks largely to heavy, unleveraged short exposure.

MKP Credit, the $600 million MBS fund managed by Anthony Lembke and Patrick McMahon, produced a 0.9% return in February, taking its total gain to 1.55% for the year so far. By comparison, the Absolute Return Credit Index returned 0.20% in February and is up 0.07% for the year. The fund reports an annualized return of 13.39% since inception in 1999 and is one of the top-performing credit strategies over the past five years, according to the