Wednesday, 6 May 2015
Last updated 3 hours ago
Jul 30 2010 | 1:02pm ET
Hedge fund Metacapital Management soared 28% in the first half, with half of that return coming during the second quarter, the worst for the hedge fund industry in a decade.
The $150 million New York-based firm profited from government-backed debt in the first six months of the year, founder Deepak Narula wrote to investors. The firm, which debuted in 2008 with Narula, a former mortgage-bond trader at Lehman Brothers, at the helm, posted an eye-popping 125% return last year, Bloomberg News reports.
Now, however, the firm is girding itself for a potential “one-time amnesty” term change by Fannie Mae and Freddie Mac, which could save homeowners a whopping $50 billion a year through refinancing. The “only losers” in such a scenario “are the security holders of mortgages that are paying above-market interest rates,” Narula wrote.
To protect itself from such a refinancing wave, Narula said that Metacapital was buying lower-coupon mortgage bonds to hedge its bets on the inverse interest-only tranches of collateralized mortgage obligations that earned the firm its big returns in the second quarter.
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…