Architect Of Goldman Subprime Bet Sees HF Up 30%

Oct 16 2012 | 1:07pm ET

Josh Birnbaum, who helped orchestrate Goldman Sachs’ highly-profitable bets against subprime mortgage-backed bonds, hasn't lost his touch: his hedge fund is reportedly up 30% this year.

The gains by Tilden Park Capital Management were reported to Bloomberg by “a person familiar with the matter."

The $1.1 billion hedge fund was reportedly up 6% in September. Birnbaum refused to comment on the results but told Bloomberg that non-agency U.S. mortgage securities make up the largest portion of his hedge fund's portfolio.

“There’s billions of dollars of bonds trading a week and they are hotly debated by people who trade them,” Birnbaum told Bloomberg. “That produces an opportunity to make money in this space because valuation opinions are vastly different.”

The fund also trades mortgage debt supported by the government, commercial mortgage bonds and asset-backed securities and invests in equities, corporate credit, currencies, interest rates and volatility.

Birnbaum founded Tilden Park in 2008 with a fellow Goldman alumnus, Jeremy Primer, and they began managing capital in 2010.


In Depth

Will Liquid Alts’ Performance Sustain Future Asset Flows?

Aug 25 2014 | 10:34am ET

Liquid alternative investment funds saw the highest percentage of capital inflows...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.