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

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…