Launches & Closures Hedge Funds

Cerberus looks to distressed mortgages

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Forget the auto industry. Cerberus Capital Management has built a team of 30 mortgage experts to take advantage of what Chief Executive Steve Feinberg sees as "one of the best potential buying opportunities I have ever seen" over the next 12 to 18 months.

The firm, whose flagship international fund was down 3.61% this year through September, has been hiring banking and investment banking professionals with experience in both residential and commercial mortgage-backed securities, structured credit products and distressed investing. The team includes veterans in the sale of distressed loan portfolios from the old Resolution Trust Corporation, which was