Fri, Dec 19, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Third Point's subprime portfolio returns over 24% in 2012, firm sees increasing opportunities

Monday, October 08, 2012

amb
Bryan Whalen
From Precy Dumlao, Opalesque Asia:

The surge in subprime market gains helped propel Daniel Loeb’s Third Point to post 24.3% positive returns for its subprime portfolio so far this year.

Indeed, the fund’s subprime portfolio posted the highest returns amongst its asset backed securities portfolios. Third Point’s Reremic gained 11.6%, CMBS posted 10.7%, and Other Collateral returned 9.1% as at end September this year.

The firm said in its Third Quarter Investor letter, "Undoubtedly investors have seen a flurry of news articles about improvement in housing prices and correspondingly identifying mortgage-backed securities as the hottest area for credit investing. Our portfolio, representing 15% of our invested capital, has returned 15% YTD on average exposure and we are on track this year to generate the kind of returns we delivered in 2009 and 2010 in this area. All of our collateral types have generated positive returns this year.

The rising demand in diminishing asset has increase pushed profits on subprime backed securities to an estimated 30% this year, according to a Businessweek article.

Bryan Whalen, co-head of mortgage bonds at TCW Group Inc., a Los Angeles-based firm that oversees about $130bn in assets, was quoted as saying, "The contraction is a huge part o......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - Big hedge funds win again on PetSmart, Riverbed, RBS sells real estate loans to hedge fund Cerberus, Talisman energy speculation: Which hedge funds could benefit?[more]

    Big hedge funds win again on PetSmart, Riverbed From CNBC.com: Another week, another set of wins for activist investors. On Sunday, pet supply retailer PetSmart agreed to the largest leveraged buyout of the year at $8.7 billion. Hedge fund firm JANA Partners had been pushing for a sale a

  2. Outlook - Hedge fund manager who remembers 1998 rout says prepare for pain, Bond guru Bill Gross predicts U.S. economic growth to dip to 2%[more]

    Hedge fund manager who remembers 1998 rout says prepare for pain From Bloomberg.com: Stephen Jen landed in Hong Kong in early January 1997 as Morgan Stanley’s newly minted exchange-rate strategist for Asia. He was soon working around the clock when investors began targeting the region’s

  3. Opalesque Exclusive: U.S. legal receivables fund launched in August[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Investing in asset-backed receivables is a strategy that has been an integral part of the alternative investment space within the overall fixed income asset c

  4. Comment - High fees and low performance hit hedge funds[more]

    From FT.com: Disenchantment over high fees and lackluster performance may finally be turning the tide against hedge funds, fresh data suggest. Despite generally weak returns since the global financial crisis, hedge funds have enjoyed positive net inflows every year since 2010. This helped assets und

  5. Performance - Lansdowne, Man Group, other hedge funds profit from shorts in oil, Turmoil boosts hedge funds that bet against Russia, oil, CTAs post strongest returns since December 2010[more]

    Lansdowne, Man Group, other hedge funds profit from shorts in oil From Valuewalk.com: The rising short interest in oil companies implies that the worst for oil is yet to come. Data from Markit shows that short exposure in energy sector of S&P 500 is still looming close to the highest mar