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.