Ten-bagger Hedge Fund: Subprime schadenfraude
Via Paul Kedrosky - Financial Times: 1000% hedge fund wins subprime bet
A Californian hedge fund has made more than 1,000% return this year by betting against US subprime home loans, making it one of the world’s best-performing funds of all time.
Mr Lahde said he expected the collapse in value of subprime mortgage-linked securities to be repeated for bonds backed by commercial property loans in a deep recession – which he also predicts.
Mr Lahde has used the phenomenal returns to boost his business, launching a fund to bet against commercial real estate this autumn – which made 42% in its first two months – and is in the process of creating a third fund to short credits with a broader mandate.
Scary stuff. And this is not from a perma-bear, this is someone who made a 10x return!
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