California Hedge Fund earn 1000% on US Subprime loans

The current downturn in US Subprime loans has yielded a windfall profit for a California Hedge fund manager. The U.S. Residential Real Estate Hedge I, II and V.  were all launched last year and all three funds are dedicated to the same investment strategy using different levels of leverage in “shorting the riskiest tranches of sub-prime mortgage securitizations” according to the report’

 The funds launched by Andrew Lahde of Santa Monica California, has gained in excess of 1000% so far this year investing in US Sub prime loans. Such record-breaking gains were made possible due to the significant down turns resulting from the real estate market credit problems.
Lahde Capital managers shorted the US Subprime mortgage loans, according to news reports, such derivative investment strategy has made about $20 billion so far in 2007, making such trade the single most profitable investment of all times, with a profit margin of about $12 billion.

According to the report, the Lahde Capital has begun returning investor’s money back, in view of the smaller risk potential as seen by the fund’s managers. Prior to this record gain, RAB Capital, a London based hedge fund manager once earned 1475.5% in special events investing in 2003. Lahde Capital managers charges  1% management and 20% performance fee, while the minimum investment in the vehicle stands at  a $250,000.

Hedgefundexchange.net Staff writer