Harbinger Fund Doubles On Subprime Shorts

Oct 4 2007 | 12:21pm ET

For hedge funds burned by the subprime slide, the disaster was the market equivalent of an act of God: It simply could not be foreseen. But one aptly named hedge fund foresaw, and is profiting handsomely.

Harbinger Capital Partners' bets against subprime mortgages were rewarded as one of its hedge funds has doubled in value, while another has managed a more modest 65% year-to-date return. Its eponymous $11 billion flagship added 5.4% in September is up 65% through last month, Bloomberg News reports, and its $2.5 billion Special Situations Fund has enjoyed even greater success, with September’s 9.9% return bringing its year-to-date to over 100%.

In addition to shorting subprime at the right time, the firm credited a bullish commodities market for the returns.


In Depth

Q&A: High Conviction, Low Correlation

Oct 30 2014 | 7:35am ET

Acadian Asset Management's numbers are big: over $70 billion in assets under management...

Lifestyle

Ex-Hedgie Steyer Gives $56M To Climate Action Super PAC

Oct 28 2014 | 9:23am ET

Retired Farallon Capital founder Tom Steyer has poured almost $56 million into his...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

The yield curve and stock market response

Traders form habits quickly. Understanding these and their effects can better equip us to decipher actual market moves.

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.