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Log inTop Hedge Fund gains 38% betting on Mortgages..
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Top Hedge Fund gains 38% betting on Mortgages..
by FluteHolder Sat Jan 05, 2013 6:44 pm
http://www.bloomberg.com/news/2013-01-04/narula-s-no-1-hedge-fund-gains-38-betting-on-mortgages.html
Fannie Mae and Freddie (FMCC) Mac have a friend on West 57th Street. That’s the New York address of Metacapital Management LP, the hedge fund founded by Deepak Narula.
The much-maligned mortgage aggregators were taken over by the federal government in 2008 and have since absorbed $140 billion in taxpayer bailout money. The head of the House Financial Services Committee wants to abolish them. Yet they still own or guarantee more than half of all U.S. housing loans -- and for that reason, the administration of President Barack Obama isn’t about to let them go belly up.
Narula, 49, has used Fannie and Freddie to build the world’s most-successful hedge fund. His Metacapital Mortgage Opportunities Fund, which invests heavily in agency mortgages, returned 37.8 percent in the first 10 months of 2012, putting it at the top of the Bloomberg Markets list of the 100 best- performing hedge funds managing $1 billion or more, which will be published in the February issue of Bloomberg Markets. That comes on top of a 23.6 percent return in 2011. The Mortgage Opportunities fund is up 520 percent since it started trading in July 2008.
>>>
Anyone aware/have idea about how much DrawDown (DD) a hedge fund would normally have? That is max risk they would take totally in their account?
Fannie Mae and Freddie (FMCC) Mac have a friend on West 57th Street. That’s the New York address of Metacapital Management LP, the hedge fund founded by Deepak Narula.
The much-maligned mortgage aggregators were taken over by the federal government in 2008 and have since absorbed $140 billion in taxpayer bailout money. The head of the House Financial Services Committee wants to abolish them. Yet they still own or guarantee more than half of all U.S. housing loans -- and for that reason, the administration of President Barack Obama isn’t about to let them go belly up.
Narula, 49, has used Fannie and Freddie to build the world’s most-successful hedge fund. His Metacapital Mortgage Opportunities Fund, which invests heavily in agency mortgages, returned 37.8 percent in the first 10 months of 2012, putting it at the top of the Bloomberg Markets list of the 100 best- performing hedge funds managing $1 billion or more, which will be published in the February issue of Bloomberg Markets. That comes on top of a 23.6 percent return in 2011. The Mortgage Opportunities fund is up 520 percent since it started trading in July 2008.
>>>
Anyone aware/have idea about how much DrawDown (DD) a hedge fund would normally have? That is max risk they would take totally in their account?
FluteHolder- Posts : 2355
Join date : 2011-06-03
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