Tosca Doubles Down On Subprime Mortgages

Apr 27 2010 | 2:38am ET

Toscafund Asset Management is bidding to become one of the largest players on the European secondary mortgage market with a pair of new funds investing in the space.

The London-based hedge fund has already closed one fund focused on British subprime mortgages with £250 million. It’s now hoping to raise another £250 million for a second fund that it plans to launch this summer.

Tosca’s first mortgage fund is off to a fast start, on track to return 22% to investors this year, the Financial Times reports. The Tosca Mod Fund bought up U.K. subprime mortgages from banks seeking to unload them at a discount last summer, often grabbing the highest-quality mortgages of the lot. The fund paid roughly 60% of face value for the mortgages.

The second fund, Tosca Enhanced Mod, will buy mortgage-backed bonds and other securitized mortgage securities in addition to distressed mortgages, according to the FT, targeting returns of 8% to 12% annually over a five-year period.


In Depth

Q&A: Neil Azous Talks Global Macro Investing

Nov 24 2014 | 12:41pm ET

Neil Azous is the founder and managing member of Rareview Macro, an advisory firm...

Lifestyle

Scene Last Night: Clinton, Schwarzman, Corzine, Neidich, Diamond

Nov 25 2014 | 5:52pm ET

Steve Schwarzman had a granddaughter yesterday morning. Last night he sat one table...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.