Tuesday, 29 July 2014
Last updated 1 hour ago
Jun 16 2014 | 9:45am ET
Pine River Capital Management has returned outside capital invested in a mortgage hedge fund designed to profit from the financial crisis.
The Minnesota-based firm, which also recently closed its $4.5 billion flagship to new investment, returned client money in its Liquid Mortgage Fund this month, The Wall Street Journal reports. The fund’s performance had been flat for the past year-and-a-half, after strong returns in 2012, when it rose 29%.
Liquid Mortgage invested in agency mortgage bonds, which were hard-hit during the financial crisis. Despite the fund’s success, managers Jiayi Chen and Steve Kuhn reportedly believe that the outsized returns the $700 million fund once enjoyed are unlikely to be repeated.
Indeed, Pine River is seeing fewer opportunities all around: It told clients in its main Pine River Fund that it would stop accepting additional investment due to “few outsized opportunities.”
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…