CQS Unveils Levered, Concentrated Mortgage-Backed Fund

Feb 6 2012 | 3:06pm ET

CQS has launched a new mortgage-backed securities hedge fund with US$140 million in initial assets.

The CQS ABS Alpha Fund debuted this month, Bloomberg News reports. In addition to the initial assets, the fund has another US$60 million in commitments, but CQS told clients that "further inflows will be contingent on market opportunity."

The new fund will be run by Alistair Lumsden, who managed the firm's existing ABS Fund. That vehicle has managed a 29.3% annualized return since its inception in 2006; CQS restricted inflows into the $2 billion fund in May.

ABS Alpha will be a riskier play than the ABS fund, using more leverage, less hedging and building a more concentrated portfolio of less-liquid investments. Given those plans, the fund has a one-year lockup with early-withdrawal penalties. In addition, investors will only be able to pull a quarter of their money each quarter.


In Depth

U.S. Treasury Moves on Reinsurance Loophole

Apr 24 2015 | 5:11pm ET

The U.S. Treasury Department has released proposed rules aimed at limiting the ability...

Lifestyle

Puerto Rico Woos The Rich But So Far Gains Little

Apr 17 2015 | 2:45am ET

Hedge fund manager Rob Rill grins. He has just had word that U.S. financial regulators...

Guest Contributor

Starting a ‘40 Act Fund Family? Don’t Forget Your Board

Apr 30 2015 | 7:18am ET

The convergence of the hedge fund and mutual fund worlds continues unabated, as...

 

Editor's Note