Thursday, 24 July 2014
Last updated 4 hours ago
Jan 18 2013 | 12:56pm ET
A mortgage hedge fund helmed by a former Goldman Sachs banker nearly tripled its assets last year while soaring more than 35%.
Tilden Park Capital Management, launched two years ago by Josh Birnbaum, who helped orchestrate Goldman's highly-profitable bets against subprime mortgages during the financial crisis, joined the ranks of the billion-dollar hedge funds last year. The firm, which started the year with $366 million, now manages $1.25 billion, a nearly three-fold increase, Asset Backed Alert reports.
And those new investors are being handsomely rewarded: Mortgage hedge funds on the whole did well last year, rising 20% on average. But the Tilden Park Investment Fund returned more than 35% last year. Since its debut in January 2011 with $15 million, Tilden Park has had just one losing month, in October 2011, when it fell less than 1%.
At Tilden Park, Birnbaum and his team, which he brought with him from Goldman, focus primarily on non-agency residential mortgage bonds, with some money invested in agency debt and commercial mortgage-backed securities.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…