ResCap CEO May Launch Hedge Fund

May 7 2013 | 11:56am ET

After five years trying to beat the hedge funds hounding his employer, Residential Capital, Thomas Marano may be joining them.

Marano yesterday resigned as CEO of the bankrupt Ally Financial subprime mortgage lender. The former Bear Stearns executive, who has headed ResCap since 2008, may start his own hedge fund.

Marano may also choose to launch a real-estate investment trust, and he said he's been in talks with "very large, New York-based" private-equity firms about starting a mortgage-related business."

"I've been modeling the numbers on [hedge funds and REITs] and I'm intrigued with that possibility," Marano told Dow Jones Newswires. The mortgage business "is a pretty hot space right now, so I'm really looking at those two options," either "doing it on my own or doing it with someone who's got more of the infrastructure established."

Marano is no stranger to the alternative investments world: He owes his old job at ResCap to Cerberus Capital Management, where he was a managing director and which put him in charge of the lender after buying a controlling stake in Ally from General Motors. Marano will remain chairman of ResCap.

Marano's exit comes as hedge funds and other ResCap creditors continue to battle over the company's planned exit from bankruptcy. Ally wants to cut ties with the lender, while some hedge funds want to make the company responsible for some of ResCap's losses. ResCap on Friday sued the Ad Hoc Group of Junior Secured Noteholders, accusing it of seeking $180 million in extra interest payments.

The Ad Hoc Group includes hedge funds Appaloosa Management, Marathon Asset Management and Silver Point Capital.


In Depth

PAAMCO: Will Inflation Deflate the Asset Bubble?

Jan 30 2018 | 9:49pm ET

As the U.S. shifts from monetary stimulus to fiscal stimulus, market pricing should...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Boost Hedge Fund Marketing ROI By Raising Your ROO

Feb 14 2018 | 9:57pm ET

Tasked with delivering returns on client capital, a common dilemma for many alternative...

 

FINalternatives Trending

From the current issue of