Mooring Financial Corp., a private investment firm specializing in the management of alternative assets, has seen its hedge fund, the Mooring Intrepid Opportunity Fund gain 37% year-to-date, while global hedge fund returns have declined almost 10% this year.The fund gained by capitalizing on corrections in the high-yield corporate bond, commercial mortgage-backed securities and subprime residential mortgage markets. The Fund has gained 132.1% since its inception on March 1, 2007, the Fund’s highest gain on investment to date.
"The centerpiece of our objective for Mooring Intrepid Opportunity Fund is the expectation of a repricing of risk in the credit markets," said president and founder John Jacquemin, "We mapped out a strategy two years ago in anticipation of the credit markets debacle now taking place. The fund’s positions are volatile and aggressive, and appropriate only for investors who understand these risks."
In recent weeks, the fund has begun to take additional bearish positions in financial and commercial real estate stocks as well as exchange traded funds in anticipation of continued deterioration within these markets.
"We believed strongly that the credit markets had reached a point of excess never before experienced in modern history." Jacqumin explained, "and we felt strongly that the risk/reward ratio was very much in our favor. This has proven to be the case."
The firm has acquired and managed more than $2 billion of financial assets since inception in 1982. Mooring Financial Corporation manages four funds across different asset classes, including distressed commercial loans, real estate tax liens, publicly traded equities and credit derivatives.