Hedge funds seeking the hottest trade of 2013 are turning to skyscrapers, shopping malls and hotels after last year’s rebound in residential real-estate drove the industry’s best gains.
Boaz Weinstein, founder of Saba Capital Management LP, and Tom Kempner of Davidson Kempner Capital Management LLC cited commercial property bonds as their best investment idea last week at the EnTrust Investment Summit in New York, according to a person who attended and asked not to be named because it was a private event. Jamie Dinan, founder of York Capital Management LP, also speaking at the conference in the Waldorf Astoria Hotel, said his top pick is commercial property and stocks.
The managers, who can buy everything from corporate loans to stocks and derivatives, are joining mortgage-bond investors including Seer Capital Management LP and LibreMax Capital LLC touting commercial real-estate after property values recovered 45 percent since bottoming in December 2009. Firms are mainly investing in the $550 billion commercial mortgage backed securities market after the hedge-fund industry reaped its biggest gains last year on bets tied to subprime-home loans.
Read more...Funds Cite CMBS Top Bet After Subprime Gains: Mortgages - Bloomberg
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