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.


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