Oxford's Hedge Fund To Buy at a Discount
Oxford Funding Corp. has formed a hedge fund to invest in discounted portfolios of residential and commercial mortgages.
"The fund gives Oxford Funding another vehicle and another opportunity to profit from disruption in the current mortgage markets," said Ron Redd, Oxford's CEO, in a news release. "There is presently so much opportunity in the market. We want to capitalize on as much as possible."
The company said in early March that its annualized rate of return on its portfolio exceeded 90%.
The new fund will invest in performing, subperforming and nonperforming mortgages purchased on the secondary market at substantial discounts to face value. The fund's strategy will be to hold, modify if necessary, and ultimately liquidate the mortgage assets at significant gains over the purchase price. The fund and its investors will participate in the yields generated during the holding period, and from gains on the sale or liquidation of the mortgage assets.
"This will give us the ability to buy more and make more than we have done to date," said Robert Dunn, president of Oxford Funding. "The fund will take us to the next level in terms of the type and size of portfolios we can buy."
Oxford Capital Management will manage the fund and receive a management fee and a percentage of the profits generated by the new fund.
Investments in Oxford Opportunistic Mortgage Fund will be marketed to accredited investors via a private placement memorandum.
Oxford Funding Corp. is a publicly traded asset resolution company specializing in the purchase and management of bulk mortgage loan portfolios.
Senior management at Oxford has facilitated rehabilitated loan sales in excess of $1 billion, traded billions of dollars of financial assets as principal and agent, and has established relationships with hundreds of financial institutions and loan investors. (c) 2008 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com/ http://www.sourcemedia.com/