Saturday, 23 August 2014
Last updated 1 day ago
Sep 13 2011 | 1:49pm ET
Fittingly for the worst month for hedge funds since the depths of the financial crisis, one of August's winners did so with a crisis-era strategy: betting against subprime mortgages.
New York-based LibreMax Capital gained 1.2% last month, Bloomberg News reports. The firm, founded last year by three former top Deutsche Bank traders, credited the gains to its short bets against subprime mortgages, high-yield corporate bonds and stocks.
LibreMax's $653 million flagship is now up 5.1% on the year and 9.5% since its debut in October.
"For the last several months, we have oriented ourselves more defensively, which positioned us well for August's volatility," the firm told investors.
August wasn't all roses for LibreMax; the firm took losses on its housing debt investments.
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note