Wednesday, 24 August 2016
Last updated 1 hour ago
Oct 10 2012 | 1:35pm ET
The second time is proving the charm for Metacapital Management and founder Deepak Narula.
After liquidating his hedge fund five years ago—Narula called the housing-bubble burst a bit too early, he says—the relaunched Metacapital has returned in excess of 500%.
It's continuing that strong run this year. The $1.4 billion New York-based firm is up 34% in 2012, Bloomberg News reports. Narula told investors the success came from Metacapital's bets on bonds and subprime debt, both of which have paid off under the Federal Reserve's third round of quantitative easing.
Metacapital has also bought non-agency securities, Narula wrote.
"At the start of the year we though that housing could be a surprise on the upside," he wrote. "It looks like this is the year housing turns and that's largely attributable to actions the government has taken."