Former Deutsche Bank AG mortgage-bond trader Troy Dixon’s new investment firm is projecting its first hedge fund will start in July with $200 million of capital.
Dixon founded the New York-based company, Hollis Park Partners LP, which will focus on “trading the entire suite of products within the structured mortgage finance space,” in December, according to a marketing document, the authenticity of which was confirmed by Dixon.
The firm’s name stems from the fact that he grew up in the middle-class neighborhood of Hollis in New York’s Queens borough and now lives near Duane Park in the Tribeca area of Manhattan, Dixon said today in a telephone interview. “It reflects the journey,” he said.
Dixon, 42, left Deutsche Bank in October after almost eight years, following former traders at the company including LibreMax Capital LLC’s Greg Lippmann and Saba Capital Management LP’s Boaz Weinstein in departing to start hedge funds.
His new firm’s investment team includes Joseph Valentine, a former co-head of CRT Capital Group LLC’s securitized-products group, and Douglas Adelman, according to the document. Other employees include Chief Operating Officer Glenn Morrison and Ajai Thomas in investor relations. Hollis Park’s prime brokers will be Bank of America Corp., Barclays Plc and Goldman Sachs Group Inc., the document showed.
Hedge funds that invest in securitized debt represented the top two categories over the past two years, according to data compiled by Bloomberg. Asset-backed funds gained 34 percent in 2012 and 2013 as mortgage-backed arbitrage funds, which typically focus on government-backed debt, gained 27 percent. Bloomberg’s Global Aggregate Hedge Fund Index rose 13 percent.
Dixon focused on U.S. government-backed, or agency, home-loan securities at Deutsche Bank. In 2011, Black Enterprise magazine named him among the 75 most powerful blacks on Wall Street, saying he then managed a “multibillion-dollar balance sheet.”
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