Guggenheim Unveils Mortgage Hedge Fund

Jan 5 2009 | 9:39am ET

Guggenheim Partners, a $100 billion asset management firm, has launched a mortgage hedge fund to exploit opportunities in the real estate and commercial mortgage sectors.

The firm’s $233 million Opportunistic Investment Grade Securities Fund made its debut in October and is up 8.2% in its first two months of trading. 

The fund will invest primarily in performing and non-performing real estate assets, including mortgage loans, mortgage-backed securities and asset-backed securities. It will also invest in other securities, including collateralized obligations and derivatives.

The firm said it believes that the recent volatility in the credit market has created numerous dislocations and that more are likely to occur as the excesses of the past few years are unwound. It also believes that high quality assets will be sold by many investors due to capital needs, margin calls or forced liquidations and the fund will seek to take advantage of these opportunities as they arise.

The fund charges a 1% management fee and a 10% incentive fee with a $25 million minimum investment requirement.

Guggenheim’s current business lines include asset management, investment advisory, capital markets, institutional finance, and merchant banking.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

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.