Alternative Market Briefing

People: Lee Hetfield joins ARE Asset Management as portfolio manager, Filippo Stefanini joins Eurizon as head of hedge fund research, Scott R. Metchick appointed CIO at Tremont, Yamagishi to be portfolio manager at Zest Asset Management, Yamagishi to be portfolio manager at Zest Asset Management, Allen Cheng named as managing director at Altegris Investments, Aufhauser resigns as UBS fallout continues

Tuesday, August 05, 2008

Opalesque Exclusive: Lee Hetfield joins ARE Asset Management as portfolio manager Opalesque has learned that Lee Hetfield that he has joined Miami, Florida-based ARE Asset Management as Portfolio Manager. The distressed credit and distressed real estate asset management shop which is run by Jeffrey Kirsch launched the ARE Opportunity Fund in May 2008. The Fund purchases mortgage (whole) loans and pools of loans directly from banks and other originators, but not securities.

According to investor correspondence, “Simply stated, the strategy on the residential mortgage side is generating returns using both loan modifications negotiated with borrowers to create loan re-performance, as well as loss mitigation techniques. Re-performing loans are held for income or sold to securitizers or other investors for a gain. Loans that cannot re-perform, resulting in “REO” or real estate owned property, are resolved via a property sale or entered into a rental income program. The fund also opportunistically invests in senior commercial loans backed by improved real estate at low LTV’s (50-65% of 90 day liquidated value, 35%-45% of BPO), through high-yielding originations made by an affiliated commercial loan originator, SeaBreeze Financial.”

The ARE Opportunity Fund strategy currently has $110m in assets returned +1.59% in June and estimates for July are approximately +1.5%. Corporate website: Source......................

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