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

Q&A: Sancus Capital And The Disruption Of The CLO Market

Oct 5 2017 | 6:28pm ET

Traditional collateralized loan obligation (CLO) funds in the U.S. market can offer...

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

Finding Success as Alternatives Converge

Oct 9 2017 | 4:00pm ET

Rising interest among institutional investors over the past several years has led...

 

From the current issue of