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.

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Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…