Citi Mortgage Hedge Fund Soars 16%

May 18 2011 | 11:57am ET

Citigroup can't win for losing. It apparently can't win for winning, either.

The banking giant said a mortgage hedge fund that almost exclusively manages its own capital is up 16% this year. The only problem is that, under the Volcker rule, it's either got to raise a lot more money for the $395 million vehicle, get rid of it or pull its own currently very profitable capital.

The bank may seek to do the former, Bloomberg News reports, prior to the implentation of the Volcker rule, which is likely several years off.

The Mortgage/Credit Opportunity Fund was launched in 2008 by former Halcyon Asset Management principal Rajesh Kumar. Citi seeded the fund, which invests in both commercial and residential mortgage bonds, with $200 million.

The fund returned 17% in the last eight months of 2008, 23% in 2009 and 26% last year.


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

A Hard Look At Your ‘Soft’ Hedge Fund Marketing Information

Dec 8 2016 | 9:03pm ET

Conventional wisdom holds that due diligence examines quantitative as well as qualitative...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR