Friday, 24 October 2014
Last updated 2 hours ago
Jul 23 2007 | 11:41am ET
Hedge fund manager Michael Vranos, founder of Ellington Management, is looking at the carnage in the sub-prime mortgage market and seeing a big opportunity. He is seeking some $750 million in permanent capital for a new vehicle that will invest in sub-prime residential mortgage loans.
According to The New York Times, which obtained a copy of the offering statement for Ellington Financial, almost one-tenth of the money raised for that vehicle would go to investing in Spyderion Holdings, a real estate investment trust Vranos set up just two months ago. The trust, in turn, is the owner of some $345 million of risky equity residuals.
The Times speculates that Ellington Financial may be, in part, a way for Vranos to get more for the sub-prime assets than he would be able to on the open market.
Vranos—who wasn’t happy about the newspaper seeing the offering, which is a private placement for institutional investors only—denied that unloading the residuals, issued by the now-bankrupt New Century Financial Corp., was the motivation for Ellington Financial.
“I don’t know if they’ve declined. I’m not responsible for pricing them—we use third-party pricing,” he told the paper. “That’s obviously a question that potential limiteds ask all the time. Obviously we have an answer.”
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
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