Monday, 27 February 2017
Last updated 2 days ago
May 1 2012 | 3:08am ET
Stark Investments is well on its way to reaching its fundraising goals for its new mortgage hedge fund.
The St. Francis, Wisc.-based firm expected to raise $100 million for its Mortgage Opportunities Fund last month, and indeed it has, 4-traders.com reports. The biggest chunk of the money came from the Arizona Public Safety Personnel Retirement System, which committed up to $40 million.
Early last month, Stark disclosed that it had raised $39.5 million for the new fund, its first launch of the year. The firm hopes to raise between $200 million and $300 million total.
"There has definitely been a pick-up in investor interest in the asset class and the amount of interest has caused managers to want to come to market with a product because they know there is an appetite for it," Stark co-founder and Mortgage Opportunities portfolio manager Michael Roth told 4-traders.com.
"Where does the yield-hungry investor go to whet their appetite?" he asked. "Investors were waiting to see if they could get yield in other places and found it was not happening."