Hedge Funds

Pine River hires heavy hitter for new REIT

by

Two Harbors will pursue a relative value strategy targeting residential mortgage-backed securities.

Bill Roth, who ran a Citigroup proprietary trading effort in mortgage-and asset-backed securities, has joined Pine River Capital Management to serve as a mortgage portfolio manager and co-chief investment officer of a new real estate investment trust the firm has formed under its Two Harbors Investment subsidiary. From 1981 to 2004, Roth was part of the Salomon Brothers/Citi mortgage sales team.

Roth will co-manage the vehicle with Steve Kuhn, head of fixed-income trading and portfolio manager of Pine River’s high-performing Nisswa Fixed Income Fund. Kuhn joined the $1.3 billion Pine River from Goldman Sachs Asset Management in January 2008.