Fortress Mortgage Fund Battered In First Three Months

Jul 21 2008 | 9:58am ET

A new Fortress Investment Group hedge fund betting on a rebound in mortgage-backed securities has fallen by about 30% in its first three months of trading.

The Fortress Mortgage Opportunities Fund is reeling from the continuing downward spiral in the mortgage market, The Wall Street Journal reports. The fund invests only in the highest-rated mortgage-backed bonds, and employs only three-times leverage.

Still, despite the dismal start, the Mortgage Opportunities Fund is not in danger of collapse, thanks both to its modest leverage and its three-year lockup period. Fortress raised some $560 million for the fund, and in June invested another $200 million.


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

A Hard Look At Your ‘Soft’ Hedge Fund Marketing Information

Dec 8 2016 | 9:03pm ET

Conventional wisdom holds that due diligence examines quantitative as well as qualitative...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR