Fund launches & closures Hedge Funds

Kessler says new MBS strategy is 'overwhelmingly compelling'

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Irv Kessler, co-founder and former chief executive of Deephaven Capital Management as well as several option market-making businesses, launched a new vehicle on December 5 that seeks to profit from investing in and trading U.S. agency-guaranteed mortgage-backed securities.

"For the first time since leaving Deephaven over six years ago, I have...found a trade that is overwhelmingly compelling and scalable," Kessler wrote in a letter to friends and potential investors. The new fund, which seeks to raise between $250 million and $500 million, will be managed by Kessler's Provident Advisors and subadvised by Bobby Epstein, founder of Prophet Capital Management.