Mortgage Vets Prep $100M Hedge Fund

Jun 17 2008 | 9:52am ET

A pair of Friedman Billings Ramsey veterans is set to launch their first hedge fund, investing in mortgage securities, with at least $100 million.

Michael Youngblood and Steve Gaenzler’s Five Bridges Capital will debut in the next 30 to 60 days, Reuters reports. The Mortgage Opportunity Fund will invest in undervalued mortgage assets, focusing initially on non-agency mortgage securities.

“It’s not a vulture fund,” said Youngblood, in an interview. “It’s a relative-value fund. We are old-fashioned bond pickers.”

Youngblood said he hopes the fund will grow to $1 billion.

Youngblood and Gaenzler said last week they were leaving FBR Investment Management to found Washington, D.C.-based Five Bridges. The new firm has already hired an FBR colleague, senior quantitative analyst Jason Hu, and will add another three professionals in the near future.


In Depth

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Moore Capital PM Fired After Raucous Hamptons Party

Jul 7 2016 | 10:47pm ET

A portfolio manager for Louis Bacon’s $15 billion hedge fund Moore Capital Management...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...