Brownstein Readies Fund To Buy, Rent Out Homes

Jun 19 2012 | 12:22pm ET

Hedge fund manager Don Brownstein is getting into the home rental business.

Brownstein’s Stamford, Connecticut-based firm, Structured Portfolio Holdings, will launch a fund that buys and rents out homes, reports Bloomberg News, citing a June 12 letter from Brownstein to SPH investors.

“There will be a significant transformation in the way in which single family homes are owned and occupied in the United States,” Brownstein wrote. The new fund will acquire homes through distressed sales and rent them at a profit, possibly to the former owner. Ultimately, the idea is to sell the houses and “reap a profit from a recovery in prices.”

Brownstein’s SPM Core Fund, which has returned 8.7% year to date, reopened to new investment on June 1, hoping to capitalize on investment opportunities in government-backed agency mortgages, Brownstein said in his letter.

SPM also recently hired Sean Li from Blackrock, where he specialized in non-agency mortgages, and Munish Gupta from the investment management division of Morgan Stanley.

Brownstein, a philosophy prof turned fund manager, topped Bloomberg Markets’ 2010 list of the 100 best-performing hedge funds managing $1 billion or more. Brownstein’s flagship $1.2 billion Structured Servicing Holdings fund returned 50% in the first 10 months of 2010, having grown 135% in 2009.


In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


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…