HedgeCo.Net - Online Hedge Fund Database and Community

Free Registration for Hedge Funds and Investors

More than just a hedge fund database

Quick Hedge Fund Search    |    Advanced Hedge Fund Search

Sign up for our
Hedge Fund Newsletter


Each business day HedgeCo.Net keeps you informed with the top hedge fund industry news, opinion and insight from around the globe. From the latest hedge fund launches, to the impact of regulation, competition, and investor activism - we track the topics and people that make a difference to you.

Explore the most popular hedge fund articles and read manager columns, be heard by your peers in our user comments section, and take the news with you, using HedgeCo RSS and the new HedgeCo Widgets. With auto-tagging and tag clouds, you can quickly discover all related news on dozens of topics from our comprehensive archive of hedge fund articles. Want more? Only HedgeCo.Net lets you rank, post and share hedge fund news, using one-click access to article star ratings, popular social bookmarking websites, email, print, and even PDF.

Community Options
Share this article
1 Star2 Stars3 Stars4 Stars5 Stars
Loading ... Loading ...
American/English German Spanish French Italian Portuguese Chinese Japanese South Korean Russian Chinese
Translate article

New York (HedgeCo.Net) - Foreclosed properties present an opportunity, to some, of finding an otherwise unattainable home at a deeply discounted rate.  For hedge funds, foreclosures could mean massive returns in the near future.  That’s why dozens of hedge funds are quietly building their stake in the decimated U.S. mortgage market. 

Sponsored by

According to a report published by Philippines News, tens of thousands of distressed loans and foreclosed properties have been sold to hedge funds and other private equity groups. 

Lone Star Funds, a Dallas based company that invests in distressed debt, snatched up a string of mortgage-linked investments from Merrill Lynch once valued at $30.6 billion, for $6.7 billion.  It’s no surprise Merrill was quick to sell, seeing as how they were one of the biggest financial institutions to get hit by the subprime fallout last summer, writing down an estimated $25 billion.

"We’re much easier to deal with than a bank," said Jacob Benaroya, Managing Partner of Biltmore Capital Group, a hedge fund in New Jersey that has allotted $100 million a year to acquire mortgage debt.  "We’ve bought [the loan] at enough of a discount that we can make special arrangements with the borrower."

Hedge funds stress they are more lenient than the banks and in turn, better to deal with.  They may make special arrangements with the borrower, or have them turn in their house keys in exchange for forgiving the outstanding balance on the mortgage.  The hedge funds then may then turn around and try to sell the property as soon as possible, or hold on to it for a while until market conditions are ideal. 

Julie Scuderi
Senior Editor for HedgeCo.Net
Email: julie@hedgeco.net

HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!
Be sure to check out our sister sites. For more information, visit www.hedgeconetworks.com



News Tags:, , , , , , , , , , , , , , ,

E-mail It