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From Komfie Manalo, Opalesque Asia:
The Midway Market Neutral Fund, a New York-based fixed income market-neutral hedge fund managed by The Midway Group, posted a healthy 2.5% return in August (+26.15% YTD), to consistently perform positively since the start of 2010. In comparison, the Barclay Aggregate, is 7.83%, the S&P (-4.62%), and the HF Index (-0.38%) year-to-date.
The Midway Market Neutral Fund ended 2009 up +87.95%. According to the firm's website, the fund invests in securities selected from specialized sectors of the US residential mortgage markets.
John Morris, Managing Director at the firm said in a communication with investors that in the past 12 months, the fund returned +44.29%, adding that the portfolio team is "indeed pleased with our performance" despite an "unusual uncertainty" in a post-2008 scenario.
Market Commentary
In his outlook, Morris commented on the continued strain in the housing markets. He points to a a recent survey conducted by Freddie Mac that showed fixed rate mortgages are on a downward spiral as the 30-year and 15-year rates are at historical lows at 4.32% and 3.83% respectively. Refinancing activities have not yet picked up despite the low mortgages rates and many homeowners have loan-to-value ratios that exceed 80%, thus preventing them from refinancing without putting additional cash down.
The expiration of the tax credit for first time ...................... To view our full article Click here
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