Real Estate Hedge Funds Top Performing Funds - Deepak Narula's Metacapital

Oct. 12, 2012 - PRLog -- Real Estate Hedge Funds Top Performing Funds - Deepak Narula's Metacapital
Deepak Narula Beats Funds With 500% Gain: Mortgage Hedge Fund and Blackstone latest Real Estate Fund Raised Record $13.3 Billion.
http://www.hedgeho.com/hedge-fund-news/real-estate-hedge-funds-top-performing-funds/
Metacapital Management LP, the New York-based firm he founded in 2001 after leaving Lehman Brothers Holdings Inc., is up 34 percent this year, almost 10 times the industry average. Since restarting in July 2008, returns exceed 500 percent and the firm has expanded to oversee $1.4 billion.
Deepak Narula, founder  of Metacapital Management LLC, which is at the top of the best- performing category of hedge funds.
Real Estate Hedge Funds Top Performing Funds - Deepak Narula's Metacapital Success
“Mortgage funds generally are doing fabulously well, but he’s outperforming everyone,” said Rael Gorelick, co-founder and principal of Charlotte, North Carolina-based Gorelick Brothers Capital LLC, a $250 million fund of mortgage hedge funds invested in 20 managers. He’s “creative, smart, experienced and can play with two hands: This is his time.”

Deepak Narula

Narula has built his recent run on predicting how the Federal Reserve, the Obama administration and financial industry would react to the worst housing crash since the 1930s. He’s outpacing competitors by investing in both government-backed securities and riskier property debt, profiting from buying bonds that rallied as real estate recovered, and trading around government attempts to stoke refinancing.
Hedge funds focusing on mortgages returned 17 percent this year through September, according to data compiled by Bloomberg, the best performing of 18 groups. That’s almost five times the 3.6 percent gain for the industry, and compares with a loss of 0.5 percent for so-called macro funds that bet on economic trends, the data show.
Brevan Howard Asset Management LLP, Europe’s second-largest hedge-fund manager, posted a 1.6 percent gain this year in its flagship $25 billion fund, according to a person familiar with the returns. John Paulson, who made $15 billion in 2007 betting against subprime mortgages, has lost 14 percent this year in his Advantage Plus Fund.
By contrast, Pine River Capital Management LP’s $3.4 billion fixed-income fund, which like Narula invests in a various types of home-loan debt, has gained 29 percent this year, according to a performance update sent to investors.
http://www.hedgeho.com/hot-gossip/which-hottie-fits-hedge...
LibreMax Capital LLC, the firm founded by former Deutsche Bank AG trader Greg Lippmann, who benefited in 2007 from the subprime-mortgage collapse, is up about 16 percent, beating peers that focus on non-agency bonds, such as subprime and commercial property securities that don’t have government backing, according to a person briefed on the returns.
Real Estate Hedge Funds Top Performing Funds - Deepak Narula Metacapital's Success
Narula, whose 12-person firm occupies a sparsely decorated 38th floor office overlooking Central Park, declined to comment on his returns, which were provided by his investors and letters sent to them obtained by Bloomberg News.
Subprime Debt – those communications show he made money this year by buying bonds ahead of the Fed’s latest announcement of purchases; targeting securities with protection against refinancing as President Barack Obama’s administration expanded programs to help homeowners get cheaper loans; and increasing holdings of subprime debt, after avoiding it last year when it slumped.
Real Estate Hedge Funds Top Performing Funds